Loans, Debt & Credit - View Single Post - It saddens me that now a mortgage professional (Broker or Banker) has about the same credibility as

captdave · 01-09-2008, 02:30 PM

I have been a mortgage banker and financial credit analyst for many years. I have seen so much graft and fraud, it is dispicable. If you want to point the finger, most of the mortgage brokers in our country whom came into the industry over the past 5 years hurt us. They sold mortgage products to folks that could not afford them, sold the programs that were easiest to sell with the most profit and, sold a "bag" of goods to the banks whom funded the deals in the wholesale channels. I also fault the banks for then selling these loans along the secondary channels where they ending up with hedge funds where they were discounted for more profit, yes, to the banks.

In many cases, loan officers whom work for a "lender" and not a broker or "correspondent" (these have no reps and/or warrants), will write a better loan and one that will perform. We now are seeing a bigger push to underwrite the loans traditionally. This practice has started way too late. Kind of like closing the barn door after the animals are out!

Unfortunately, many mortgage brokers are akin to used car salesman.

01-09-2008, 02:30 PM	#2 (permalink)
captdave Banned Join Date: Jan 2008 Location: Florida Posts: 15 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: It saddens me that now a mortgage professional (Broker or Banker) has about the same credibility I have been a mortgage banker and financial credit analyst for many years. I have seen so much graft and fraud, it is dispicable. If you want to point the finger, most of the mortgage brokers in our country whom came into the industry over the past 5 years hurt us. They sold mortgage products to folks that could not afford them, sold the programs that were easiest to sell with the most profit and, sold a "bag" of goods to the banks whom funded the deals in the wholesale channels. I also fault the banks for then selling these loans along the secondary channels where they ending up with hedge funds where they were discounted for more profit, yes, to the banks. In many cases, loan officers whom work for a "lender" and not a broker or "correspondent" (these have no reps and/or warrants), will write a better loan and one that will perform. We now are seeing a bigger push to underwrite the loans traditionally. This practice has started way too late. Kind of like closing the barn door after the animals are out! Unfortunately, many mortgage brokers are akin to used car salesman.