Time to stop blaming the housing mess on the interest rate increase!

[spinDrAtl]

....but if a fat commission check rests on the $30,000, getting the response "Great! Where do I sign?" it is like manna from heaven. Everyone wins and the transaction couldn't have happened without participation of BOTH parties.

.

Again, personal responsibility lies with the buyer. A car dealership is in the business to sell cars. As long as the customer's credit meets the qualifications and there is no fraud involved, the dealer should not be in the business of policing how a person spends their money. What do you want, a nanny state?

 

[Pirate]

Again, personal responsibility lies with the buyer. A car dealership is in the business to sell cars. As long as the customer's credit meets the qualifications and there is no fraud involved, the dealer should not be in the business of policing how a person spends their money. What do you want, a nanny state?

Hillaryville.

 

[scooterbug44]

Again, personal responsibility lies with the buyer. A car dealership is in the business to sell cars. As long as the customer's credit meets the qualifications and there is no fraud involved, the dealer should not be in the business of policing how a person spends their money. What do you want, a nanny state?

There will always be people who are idiots about their money, my issue is with the people who KNOWINGLY loan money to people when they know they are a bad credit risk and without verifying their income etc.

Better qualification standards and checking data would have prevented most of the current mess!

 

[SHELLY]

Again, personal responsibility lies with the buyer. A car dealership is in the business to sell cars. As long as the customer's credit meets the qualifications and there is no fraud involved, the dealer should not be in the business of policing how a person spends their money. What do you want, a nanny state?

Spin,

Would we be in a different situation if the money that brokers lent was their own?

.

 

[spinDrAtl]

Spin,

Would we be in a different situation if the money that brokers lent was their own?

.

Hard to tell. If someone is lending their money, only that person/company can assess the risk.

You seem to imply that brokers make the decisions to lend money. Brokers do not lend money or make lending decisions. Brokers submit loan applications/packages to wholesale lenders. The decision to lend or not lend lies solely with the lender's underwriter. These wholesale lenders do not want to deal directly with end customers, just like wholesalers of any other product.

Outside of fraud by the broker on the application package or fraud by an appraiser, etc (which I know happens), the lenders decisions are based on their own lending guidelines, which differ from lender to lender and change frequently.

 

[SHELLY]

Hard to tell. If someone is lending their money, only that person/company can assess the risk.

You seem to imply that brokers make the decisions to lend money. Brokers do not lend money or make lending decisions. Brokers submit loan applications/packages to wholesale lenders. The decision to lend or not lend lies solely with the lender's underwriter. These wholesale lenders do not want to deal directly with end customers, just like wholesalers of any other product.

So essentially mortgage brokers are highly compensated secretaries; no value-added, no responsibilities to the client. Just the kind of job that can be suitably substituted in the way that travel agents were replaced with Travelocity and cashiers were replaced with self-checkout counters.

 

[spinDrAtl]

So essentially mortgage brokers are highly compensated secretaries; no value-added, no responsibilities to the client. Just the kind of job that can be suitably substituted in the way that travel agents were replaced with Travelocity and cashiers were replaced with self-checkout counters.

This sounds like an answer straight out of your hero Dubya's mouth. Either you are ignorant or trying to put your own version of the truth out there.

 

[Mango]

.
.
.
.

 

[SHELLY]

This sounds like an answer straight out of your hero Dubya's mouth. Either you are ignorant or trying to put your own version of the truth out there.

So what are the "responsibilities" of a broker?

To collect and verify employment information from the borrower.
To collect and verify income information from the borrower.
To ensure the home is appraised.
To prepare and submit the loan package to the underwriter.

You stated, "Brokers do not lend money or make lending decisions. Brokers submit loan applications/packages to wholesale lenders."

Is it fair to say that the underwriters should assume that the loan package was a true and honest representation of the applicant's financial standing--isn't that what they pay the broker to do? (Not to mention offering juicy increases in YPS for upselling to lenders.)

I'm not saying that "Jose the Strawberry Picker" isn't guilty when he claims to be an Executive VP with Smuckers...but one simple phone call by the broker would have found out otherwise. (Granted it wouldn't be profitable, but that's not what we're talking about here.)

.

 

[Chip and Dale]

The Subprime Primer:

http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1