At a recent mortgage conference in Costa Mesa California, CFPB deputy assistant director for originations Calvin Hagins had a lot to say about what the CFPB will be looking closely at in 2016. LO compensation was at the top of the list. To see Kate Berry’s article CLICK HERE.
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Nothing happens when I click on the link to access Kate Berry’s article
Monique, it worked fine for me. Not sure what to say?
Starving a ton of great people already, the LAST thing the CFPB should even be looking at is the LO!!! All this talk of reforming the system…JEEZ we just went through this. These are the "real" folks in the business and they have shallow pockets as it is, Consumer Protection? I call B.S.
Here's what really needs to be investigated elected officials comp and the comp of the cfpb employees. This is really getting out of control really miss when you had the freedom to make a living and not be chastised for doing so
I'm with you, John. In fact, I'm just about out of the business and back to something more fun – after 34 years. It sickens me to see what has happened to our industry.
Kate Berry link does not work-not good guys
Someone else said that, but it’s working fine for me. Not sure what to say about it. the link is in there. Sorry.
What have you guys seen or heard of that appears to be in the 'gray area' of LO compensation?
Thanks Frank – the lemon clip at the end helped but we all now know we are going to look like that when the CFPB shows up at the door. Kind of like what the gustapo used to do in Germany is now happening in America to businesses. Death to mortgage brokers means more people unemployed…Good job CFPB for being the the Grinches that stole Christmas
That was exactly my thought. My company has a very good compensation package, but even with that if you count the hours I spend on some of my loans I am beneath minimum wage because some borrowers are just harder. The idiots making the rules don't have to worry about a paycheck. They get that direct deposit every month whether they work or not. They should sit at our desk for a couple months and see what it is really like.
Hey Arizona Realtors – any of you taking your AZ Brokers test recently and tested via Pearson Vue? I was there yesterday taking my Brokers exam and to my shock none of the applicants who tested passed..?>?>? What a money making machine….the 5 1/2 hour 2 tests that I took exhausted me and then frustrated me when I learned as everyone else yesterday they did not pass. I missed passing by 2 questions on the National which – forgive me but I studied and can't believe that I did not pass.
The State portion questions were so ambiguous that there was little doubt when I finished that I did not pass. I have taken the CA Licensee tests and passed, and taken the Arizona 2 tests in 2009 and Passed – the first time. Is it possible that the tests actually are designed for you to fail? It is not sour grapes. So many people do not pass it cannot be just me……I was hoping someone could look in this.
Exhibit A in how an out of control bureaucracy with no accountability and oversight can unilaterally destroy an entire industry. I would participate in a universal, nationwide walkout of brokers, lenders, etc. and let the entire housing industry come to a screeching halt and throw it back on their door step to fix.
Can’t wait for the jack booted, brown shirts to knock on my door.
Dianne makes a very good point about the zealots appointed to the CFPB by our elected officials. Truth is not many of them have never been in the trenches working as a loan originator and those that may have worked at lender went to work for the government because they can’t hack the job. What really troubles me is that only 4 people have commented as I write this and that my friends is a sad testament to the state of our industry. No wonder the claimed average age of a loan originator is 54 and soon no one will want the job. I hope McDonalds starts paying $15.00 an hour soon. Oh, BTW, Merry Christmas!
"Hi, my name is Barack Hussein Obama, and I was raised in a madrasa in Kenya. I hate America and I hate Americans. I promise to "fundelmentally transform" America and remake it in my own image. Therefore, I will use the CFPB to F every single person in the USA, except for those that kiss my ring." Thank you, BHO xoxo
Anything other than a fixed % of the loan amount.
There must be a better way! If today we can barely make a living with our reduced compensation due to the many overbearing rules and regulations, how then could we survive any time away from our having continued income? I believe that a change does need to take place and it starts at the top- a change in our country's leadership, overturning the Dodd-Frank rulings, and banning the unchecked power plays that the CFPB have been implementing since their inception.
Just listening to the video makes me think that this really can’t be legal. The governemt is tell a free market industry how much they can pay their employees. Does that sound communistic to anyone here?
OMG, really?
I think the business of the cfpb is profit, pure and simple. The more they can levy fines the more income they have to pay 1500+ employees. At some point I thought they would bleed over into more than the mortgage lending business, such as auto sales, big retailers, etc., but now it seems they will get all their income from the mortgage business. Staging a walkout would bring some attention to our situation as one poster suggested, but we are not organized enough for our own good.
Frank, that kid is going to put 8-10 tabs of ex-Lax in your hot chocolate or coffee one day. Count on it.
I understand and embrace the concept of protecting the consumer from "bait and switch" or any situation where their costs rise unexpectedly, especially when it occurs near settlement/ closing leaving the consumer little to no leverage to negotiate. Whether TRID is the BEST way to accomplsih that remains to be seen. HOWEVER, this (what is descibed in the vidio) seems excessive AND intrusive. Will we ever reach a point where Americans, especially those acting as consumers, are expected to assume and accept responsibility for their own decisions? The "free market" does a tremendous job of weeding out non-competitive entities and there appears to be numerous ways for a disgruntled consumer to complain. As a Realtor, I am really starting to wonder whether our government REALLY wants to encourage home ownership. Perhaps this is another part of "social justice" where our fearless leaders think it unfair that everyone cannot own a home. When will it stop. 2016???
Makes a guy almost want to vote for “The Donald”?
The SS would be proud.
The Problems starts with the fact that Loan officers are cheap and no one wants pay for respresentation. Let's stop blaming others for this mess. Why are the realtors not bother. Because they contribute to political campaigns. So start a real association with some real dues and we can still change this abuse by the CFBP. Sign me up
Why is it that CFPB employees and all of Washington employees can make six figure salaries w/ five-figure benefits but doctors and mortgage originators are being told that we make too much money and our pay schemes are not fair? We are being pushed out of the business – it is disgusting.
Luis, you are failing to realize that the Big Banks had their lobbyists write the Dodd-Frank law and the purpose is to make the professional mortgage originator extinct. WF, Chase and the others want "on-line order takers" that they can pay $15/hour to take loan applications – also, when you get the small guys out of the market (like me), then rates and fees can go up because there will be less competition. These new regulations/laws/CFPB – it is not about making things better for the consumer – it is about making things better for the big banks that contribute to political campaigns.
CFPB and Dodd-Frank is simply an arm of Wells Fargo/Chase. The goal is to get professional mortgage originators out and to be replaced by $15/hour order-takers. This is how Dodd-Frank was lobbied – follow the money.
Exactly. The banks hated our invasion of their lending turf. They write bigger checks and Congress listened to them on how to "fix" the problems that caused the melt-down. Now they have all the sheep quietly filing back into the bank to kiss their (expensive) rings and beg for approvals.
http://apps.mba.org/Advocacy/MortgageActionAlliance/MAASignup.htm
This is the biggest loby for us.
They sure don't tell Car dealers how much they can make on a car or how much they pay their salespeople. They don't tell insurance agencies how much premium they can charge. Insurers blantantly advertize the cost variations in TV ads. I wonder if my insurance agent steers me to a policy that pays him more? This is just for starters. What about medical insurers and the Pharmacuticals. The competition in the market should balance what is charged for services. Petro is a racquet also. Remember over $4.50/gal. It is amazing how the larger companies always benefit. There may be something said about the larger banks pulling the strings at the CFPB, but who in the world would have wanted all this new requlation regardless of your companies size. Please someone pinch me and wake me up from this nightmare. The CFPB has only done one thing, make it more expensive and difficult for consumers to purchase a home.
Thanks. I still think mandatory needs to happen just like the realtors
This entire agency needs to be abolished. I’ve used the word gustapo on many occasions in describing this group of human beings. Being self funded and unregulated along with having their own court, judge and jury is completely insane. Can you say socialism???
There are no two ways about it! All the "reforms" introduced by the Obama administration in 2009 should be repealed. This means a total repeal of Dodd-Frank. Why? Because these "reforms" equte to a "one-way ticket" to borrower turndowns. CFPB needs to be terminated as soon as practicable. The alternative is to have an American socieity that rents, as opposed to owns.
I believe you need to get your head out of your ass.
I believe you need to get your head out of your ass.
jerk
I don’t understand why LO’s are getting treated like this. But the lenders get away with murder.. The damn LO’s don’t approve these mortgages. The lender does.. They issue Hud-1’s not the LO! CFPB needs to go after these lenders. They are ripping people new ones. Not LO’s. They are telling us if we sale this rate we will pay you such and such.. They always want to come after the appraisers, loan processors and LO’s! We just put the papers together and the lenders have the final say so..Wanna get back in the mortgage game, but refuse to do FHA! I hope things will change.. I believe it will.. Because if we don’t make money the lenders and government doesn’t.. So go ahead CFPB make it hard for to the bottom.. Soon it will trickle up.. FASTER THAN A SPEEDING BULLET! And I will be sitting back laughing. This will come to past. Why because the foreclosure and vacancy rate is extremely high!
CFPB needs to investigate these lenders.. They approve loans, not the LO's. This is terrible.. I feel the lenders should pay the LO's not the customer. They already have to pay high lender junk fees.. LO's are not the blame. They don't issue HUD-1's. The lender does.
I have bought over 40 vehicles in my life. It is my job to go to dealerships and shop the price and the best deal. Same should be true for people shopping for the largest investment of their lives. I was never a big fan of the ugly sub-prime deals where LO's were making 5 points+ but we are in sales and are w-2 workers. Our income should not be regulated at all. Tell me one W-2 job where their income is regulated?
Interesting what and who runs these bureaus. See any patterns? How come the companies like DR Horton can require they us their finance entity or buyers do not get package benefits or same benefits if they choose their own source. Anyone say violation of RESPA????????????
Just spent numerous hours filling out useless paperwork for the idiots in charge to wipe their (&*^(^(^(^&%%.
I have felt your pain. However, as you can see, the pc police are out in force to be sure you don't use your first amendment rights to offend anyone. Having said that, while I too think BHO is doing us in, I don't believe he is the primary cause of the problems the industry has been experiencing. Don't forget; Chris Dodd & Barney Frank, Andrew Cuomo, Elizabeth Warren, just to name a few. There are probably a few Republicans hiding behind the Democrats that have pounded the nails into the coffins of the good, but small lenders, originators, appraisers, and closing agents (that have gone out of business) they just didn't have the backbone to appear on camera, as did the proud Democrats for 'fixing the problem', with 'new regulations & laws', instead of enforcing the existing ones.