Careful out there people! The CFPB has deployed their “secret shoppers” and it’s cost at least one lender millions in fines. If you’re not playing by the book, you’d better get the hell out of this business.
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I can attest to what you are saying Brian. I physically work in 2 states. Florida (my primary state) and Louisiana (my second residence state). The neighborhoods are totally different. Florida, at the beach and LA, in New Orleans. My clientele is vastly different. Lower credit scores in LA than FL, therfore a higher turn down rate. But the answer is not subsidised mortgages. Even though there is more grant money in LA for DPA, you still have to qualify for it. It is a matter of education about what it takes to acquire a mortgage. Sometimes you have to work a little harder to help people. They do appreciate the time you take with them and the ones that are willing to listen, wind up getting a home. I find when we tell people why we do things the way we "have" to do them, they totally get it. The general homebuyer classes are all good, but I find that explaining why a guideline is in place, they get it and we work to achieve success together. There are also higher property values than income to support it. Thats another discussion.
Maybe one day the rules makers in glass houses understand that lenders don't make money when they process a loan that doesn't close. There are probably 5 to 7 people that are involved in a loan transaction that get paid and invest time to work on a loan. And the lender does not make any money when the loan doesn't close.
Rule makers get out of your glass house and maybe run a business and then let's see how or if you would make the same decisions on fining lenders that want to help ANY client that has the ability to pay and the willingness to pay their mortgage.
I always thought the goal was “equal opportunity ” for everyone . Now , the goal is ” Equal Results ” . Heaven help us all ! !
Man, you really need to sit down Hillary for a serious talk as she pays her women over 30% less than the men at her foundation. Just think of how much good she could do.
disparate impact = govt can do whatever they want to whomever they want
As a taxpayer I totally object to subsidising mortgages for people who don't qualify. The focus needs to be the equal pay for equal work. Loans should be blind to ethnicity!
As a taxpayer I totally object to subsidising mortgages for people who don't qualify. The focus needs to be the equal pay for equal work. Loans should be blind to ethnicity!
I have ONE lender who subsidizes the llpa. Others simply set a minimum credit score so the low score borrowers are not eligible. I totally understand what you are saying Brian and it makes a lot of sense. Women do earn less and minorities suffer from decades of being kept in lower paying jobs and in poorer neighborhoods with lower quality education.