cpt.fass1
The Cap'n Can Make it Hap'n
+329|6982|NJ
There's a bill up in congress right now that states all people who write loans have to hold a 10% interest in the loan. Meaning if the loan goes belly up, I"m responsibly for 10% of it. Now how is this going to work?

I for one on average make 3k per loan and am worth every penny of that, 1,500 on smaller loans under 200k. So basically my income of 1,500 dollars can be whipped out if a borrower defrauds me and can't make the mortgage payment?  So one defaulted loan could cost me 200k and I only made 1,500 on it, WHY would I stay in business if this goes through..

Oh and the money I make is really worth it cause I'm an experienced person who will package a loan, get it done and get you a cheaper rate then a bank branch would. They say it's to curb the fraud that Loan Officers are responsible for.
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6982|NJ
Also I'd be ok with that, if I was making the interest off my 10% stake money.
S.Lythberg
Mastermind
+429|6733|Chicago, IL
You're taking the heat for the actions of a few, unfortunately.  But you won't find much sympathy for bankers in this country right now
mcminty
Moderating your content for the Australian Govt.
+879|7008|Sydney, Australia
Can you give a link to an article, or the bill itself, that better explains it.
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6982|NJ
http://www.businessweek.com/bwdaily/dnf … 145267.htm

Sorry my bad.. It's not even the heat of the moment of the banker thing, they're just trying to put broker/bankers out of business. I"m good at my job and spend more time working on a purchase or a closing then anyone else in this business. Slowly they're stripping away my right to make money and it's really upsetting.  I have never done anything fraudlent or pushed anyone into something that wasn't good for them, I followed lender guidelines throughout my whole 5-7 years in this business.

it's the same as the Loan Mods. They don't want people making money but you get what you pay for. The Loan mod company that the government set up is out of business, plus they wantted people making 30k a year to structure out peoples financies and good a good job of it..

Last edited by cpt.fass1 (2009-12-08 18:49:10)

mcminty
Moderating your content for the Australian Govt.
+879|7008|Sydney, Australia
Lol, I was going to ask if you worked at a bank.

Surely they don't mean you have to be personally liable. It would be interesting to see the wording in the bill itself, as I'm sure it's just talking about banks/lending institutions having higher capital adequacy requirements. I hope I don't have to explain why that would be beneficial..
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6982|NJ
Nope, they mean personally liable, say it on cnbc or some shit.. I'm just pissed trying to make heads or tails of it..

Underwriters right now are personallly responsable for default loans, but get to carry insurance. Which would be awesome for me, in this can't get anything approved world, I don't see paying for a Mortgage default insurance as being viable.
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6982|NJ
And I don't work at a bank. I'm a mortgage broker/banker, which means I market myself, structer the loans and live off of commision.

Annoying when the privaliged starts steping in and playing "Hey I know stuff". I"m now refering to Congress and political parties as privilaged because I don't think they've been effected by the recession.
Jay
Bork! Bork! Bork!
+2,006|5645|London, England

mcminty wrote:

Lol, I was going to ask if you worked at a bank.

Surely they don't mean you have to be personally liable. It would be interesting to see the wording in the bill itself, as I'm sure it's just talking about banks/lending institutions having higher capital adequacy requirements. I hope I don't have to explain why that would be beneficial..
No, the mortgage brokers would be liable for 10% of the cost of the loan to the bank if there was a default. Which... doesn't work because then they will just tack an extra 10% onto the cost of the home to cover it. It's an asinine setup dreamed up by a guy that will get voted out of office in a little less than a year.

In theory it would make mortgage brokers more responsible, in practice it will just drive up prices.

Last edited by JohnG@lt (2009-12-08 19:00:13)

"Ah, you miserable creatures! You who think that you are so great! You who judge humanity to be so small! You who wish to reform everything! Why don't you reform yourselves? That task would be sufficient enough."
-Frederick Bastiat
cpt.fass1
The Cap'n Can Make it Hap'n
+329|6982|NJ
Naa our prices are getting cut back every couple of months..

We wouldn't have a say on tacking on an extra 10%, but I'd be fine with that if I got paid the interest on the 10% that I was responsible for. If they did that, I'd actually take the risk on it, it might make sense but I wouldn't do it other wise. Have fun getting ass raped by banks who have a kid who makes 30k a year caring about your biggest investment of your life.

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