Let's fingerprint all Loan Originators, Mortgage employees and Real Estate Agents. Yep, that's the ticket. ... God Help Us! This was slipped into a the foreclosure assistance bill, and hidden in the "manager's amendment", and passed by the Senate Banking Committee.
Here are a few quotes from the article that came from "OpenMarket.org" and posted by John Berlau.
"a federal fingerprint registry totally unrelated to national security passed a U.S. Senate committee almost without notice. The legislation would require thousands of individuals working even tangentially in the mortgage and real estate industries — and not suspected of anything — to send their prints to the feds. The database and fingerprint mandates were tucked into housing and foreclosure assistance bills that on Tuesday passed the Senate Banking Committee by a vote of 19-2. "
What, ??? so fingerprinting the mortgage industry is going to fix, or would have prevented the problems we have now? Where did these idiots come from. Did we really elect them? What is their real agenda, surely they are not ignorant enough to think this will fix anything!? Here is another quote.
"The measure the committee passed states that “an individual may not engage in
the business of a loan originator without first … obtaining a unique identifier.” To obtain this “identifier,” an individual is required to “furnish” to the newly created Nationwide Mortgage Licensing System and Registry “information concerning the applicant’s identity, including fingerprints for submission” to the FBI and other government agencies."
"The fingerprint provisions are contained in a “manager’s amendment” that was hammered out by committee Chairman Chris Dodd, D-Conn, and Ranking Member Richard Shelby, R-Ala., on Monday and attached the next day to a broader housing bailout bill that had been scheduled for a committee vote. That bill, the “Federal Housing Finance Regulatory Reform Act of 2008,” expands the lending authority of the Federal Housing Administration and the government-sponsored enterprises Fannie Mae and Freddie Mac to refinance the mortgages of troubled borrowers and banks."
"The amendment defines “loan originator” as anyone who “takes a residential loan
application; and offers or negotiates terms of a residential mortgage loan for compensation or gain. It states that even real estate brokers would be covered if they receive any compensation from lenders or mortgage brokers. "
I want you to know that I try to stay neutral about political issues in my blog. I'm not always successful but I really do try. This morning I read this article on the Drudge Report and I am totally outraged. I cannot contain myself. I don't think it matters which party you affiliate yourself with, you should be stunned by this too.
The bill claims justification for this provision as: “increased accountability and tracking of loan originators,” “enhanced consumer protection,” and “facilitating responsible behavior in the subprime mortgage market.” ... Hey, they got this right. All mortgage people and real estate agents are sneaking around and far from trust worthy. They should all be put into a mandatory parole program and should have to check in every week, and provide urine for drug tests. How about an ankle bracelet too! ... "Book em Dan-O"
What has happened to us? The People we have elected and put our trust in are totally out of control. They feel and display no accountability or respect for us or the constitution. And We pay them money to do this to us!
We have to wake up.. I am so angry I can't get my thoughts in order but I wanted to get this out to you. I'll blog more about it after I cool off a little. In the mean time go read the article here, then come back and leave some comments. I need to know if I'm the only person that finds this troubling.
RE: “Docket No. FR–5180–P–01
ReplyDeleteThursday, May 22, 2008
Dear Congress and governing entities,
It has come to my knowledge that the politicians in Washington have decided that by having the Mortgage Brokers to get more forms signed by borrowers, this somehow will solve the so-called mortgage crisis? I have attached just some of the disclosures besides my very detailed Good Faith estimates and Truth-in-Lending forms for your review. My personal BROKER FEE AGGREEMENT has been in my loan packages since 1993. The borrowers who come to me for a mortgage know exactly what the charges are on a loan. I go to my closings with them just to make sure that the Lender/Banker has not put any un-disclosed charges on the loan and that the Title companies and Attorneys have not over charged our clients. In Georgia we to give the client a choice of attorney’s to close their loan so they can get the best deal out there. The Real Estate agents have to do the same. The builders still can force their preferred Attorney’s and fees on the buyer at this time.
Here is the bottom line. People were quick to take the 100% loans, the 80/20’s and the whole gamut of sub-prime products when offered. For the most part they accomplished exactly what you folks in Congress wanted: Homeownership. Folks with slow credit and self-employed folks and even some with out right bad credit were able to buy homes. We who have been in the business for many years knew that some of these loans would not work. Just because of the nature of Credit, Folks who don’t pay their bills won’t always pay their mortgage. Especially if they have “0” invested in their new home. On the other hand there were a whole lot of people like myself who went through divorces, medical problems, lay offs who when given a second chance make every effort to do the right thing and pay the note on time and re-establish their credit.
We don’t need more paper work or more laws to bail out a Wall Street who greedily bought and sold mortgage paper in the open market to investors. Who thought they were buying “A” grade paper when in fact it was what we call B, C and D paper with a high chance of default. The higher than normal rates were to compensate for these riskier loans. The higher yield should have been enough to cover the fall out form non-performing loans and it would have been except greedy Wall Street sold and re-sold it on the Derivative market and in other fund packages with no room for the defaults. Now as we go into a slight down turn in the markets it is time to pay the piper but the currency has been diminished so it won’t cover any longer. It is not the Mortgage Brokers fault. What ever happened to “The Paper Reduction Act”? These loan packages are huge and the documentation is full of duplication. We brokers compete for business against banks and lenders who don’t have to show how much they are making on loans when they sell the paper. They don’t show at closing how much Yield Spread or servicing release they make. You may be the problem because you never fix anything. You just do what will make you look good on CNN, ABC, NBC and Foxnews. So for once “DO THE RIGHT THING” and hold Lenders, Mortgage Bankers, Mortgage Brokers and everyone who has anything to do with the making home loans do it with accuracy and integrity or put them out of business. I am a licensed mortgage broker if I don’t do right my license can be revoked and I am out of business. That is all that need to be done. Look at the paper work to see if there is fraud or deception. If so then don’t let that person of company work in the industry. You can do this with the resources you have. Get rid of all the extra paper work and keep it simple. GFE, TIL and a correct 1003. Nothing else is that important. HUD1 should be within 500.00 dollars of the GFE if loan amount is the same. The solution is simplicity not red tape. Thanks for listening.
Patric Vanderbeck
Licensed Mortgage broker from Georgia
#11941
I'm a mortgage underwriter and prospective employer is wanting me to obtain same information that loan originators have to do...eventhough I'm W2'd...seems like an invasion of privacy to me.
ReplyDeleteBB/ Georgia
Yes, I agree wih you. I will have one of our staff send you the link to the reg.
ReplyDeleteIt is hard to reply to your request as we do not know what they are requiring you to provide. If they legally require it of originators, there is no reason they cannot require it of an underwriter. Georgia requires all originators, underwriters etc be W-2'd unless licensed and that is not an issue.
ReplyDelete