"Best Of 2009" - Based on reader comments and input here is one of your favorites from Askins Online...
I do a tremendous amount of reading and researching items of interest for this blog and every once in a while an article really jumps out at me and nails a subject at hand.
Recently I came across this essay on the future of mortgage brokers in The Niche Report...it pretty much lays out how the mortgage industry we once knew is being gutted by the large banks and new regulations...a few nuggets...
"The banks and mortgage bankers want your brokering behinds gone, and unless you plan on robbing banks and donating the proceeds to your elected representatives, you should plan on the banking lobby getting their way more often than not.
In other words, as a mortgage broker today, you're one of two things: You either recognize that you're in trouble career-wise, or you're deep in denial, thinking wise.
Gaze into the countenance of a mortgage broker today, and you'll see someone that looks like a Christian Scientist with appendicitis. Someone not exactly sure what the future holds, but concerned that without something close to divine intervention, it's very likely going to hurt.
It shouldn't be a secret that some believe the mortgage broker to be dead man walking. At the other end of the spectrum there are those awaiting the return of exotic stated income teaser rate loans and, one might presume, the resurgence of 8-track tapes and typewriters.
Still others seem to be banking on a never-ending stream of tax credits and REO's to keep the market moving forward, at least until, they seem to think, "things get back to normal".
At the moment, the only lender is the United States government. That state of affairs, however, won't last forever. It may take 3-5 years or longer, but the government will eventually have to buy the toxic assets still clogging bank balance sheets, and hopefully by then a new generation of investors won't remember that their fathers, who once sold mortgage-backed securities that, although rated AAA, turned out to be something between worth less and worthless. And when that day comes, the thinking goes…happy days will be here again.
Of course, by then…you'll be living under a bridge, your spouse will have long since remarried a dentist, and you'll be an expert at cooking up a very tasty squirrel pie when the kids pull over for a visit.
Either that, or you'll have thrown yourself out a window on the 89th floor of the Bank of America building in New York, hopefully taking at least one investment banker with you. Banks and other direct lenders apparently view putting mortgage brokers out of business as key to getting things back on track. It's as if to say: "You see, Mr. and Ms. Investor? We're getting rid of the less-than trustworthy, and therefore risky part of mortgage lending, so come on in… the water's fine…it's time to get back into the pool (pun intended).
Okay, so the meltdown was not the fault of rogue mortgage brokers, but that plus roughly a grand in cash will still buy you a three-bedroom/two bath townhouse in Detroit, so what does it matter? The bankers are going to hang you for it anyway."
To read this complete searing article in November's issue (page 18) by Martin Andelman, entitled "House Painting as a Career Choice-Underappreciated & Overlooked? Or: The Future of the Mortgage Broker," click here.
source: The Niche Report
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