Without getting political - how many have actually paid attention to what your representatives actually do in Washington DC? In our business, they are looking for 100% transperancy which is a good thing for the consumer. Here's my question, why are the guys trying to set the rules for transperancy doing it off the senate floor?
Better yet, why would the federal government come out with a compensation cap for the people that write loans and work with Joe Homebuyer, but not limit the big banks from their compensation when selling a loan after it closes (non-transparent to borrower)?
What I have read about the Dodd Financial Reform Bill is the purpose is to make things transparent and to avoid "too big to fail banks". Question of the day - what happens when small brokers and mid-size lenders are out of the business of mortgage loans? Answer - Banks are even Bigger to Fail!
From my 18 years in the business, I have never seen a bill that will make it more costly for the consumer. The federal government imposed the Home Valuation Code of Conduct. It did accomplish the random ordering of residential appraisals. It also allowed the "Too Big to Fail Banks" to open appraisal management companies which charge 50% more for the consumer's appraisal even though they pay the appraiser 50% less than they had earned previously. The small businessman (the appraiser) doing the work gets paid half and the large bank gets an extra 50% out of Joe Homebuyer.
Gotta love it when a plan comes together!
Any questions, call me - 860 305-1609
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