You guys are truly out of touch. ..or have been listening to the TBTF banks too much.
Prior to Sen. Warren’s efforts servicers lacked any oversight whatsoever.
As far as origination goes – I’m grateful that I’m no longer embarrassed by the rot that existed prior.
Tight underwriting unfortunately is needed as unfettered Wall St. product placement got us where we are today. If lobbyists are successful in buying TBTF leaning politicians then the industry has to pay the price. Don’t like it? Get money out of politics.
New HMDA requirements…have you guys ever completed a HMDA report? Those extra fields should be easy to add to a
query.
I don’t agree with you Tim. Just don’t. And yes of course we’ve done HMDA. It’s not a matter of how many more boxes are required to be filled in, it’s the nature of those boxes. Just wait until a discrimination issue comes up because a lender “guessed” incorrectly. Thanks for the comment man! Good dialog!
I usually find your show fun and educational but today not so much. How can you say the banking industry is all about consumer understanding? They are all about making money!!
The CFPB is put in place to protect consumers from the banking industry’s failure of transparency as well as their past shell game of selling worthless mortgage backed securities and being bailed out by our tax payer dollars!! They should be held financially and legally accountable for their past greedy actions and severely policed moving forward!
The more politicians involved the slower and lighter their consequences will be. That sounds like more of the same. Banking lobbyists paying for the freedom to do whatever they want!!
I support heavily policing the banking industry. They are in my opinion, the biggest reason my career and income in real estate has suffered so much!
And,where are we getting all this information on a phone pre-approval where we get the minimum amount of information to check credit and turn around and decline them? It would be great if they at least asked us how it all works before they come up with this stuff!
In California the 1003 has required all of that information to be completed for years. There’s also a box to check stating the borrower does not wish to furnish this information regarding ethnicity. I’ve had borrowers who marked every box and white south African borrowers who marks African-American..Having completed a class on TRID and going over the new disclosures there are glaring discrepancies in how the costs are presented . It’s almost hilarious … Almost . It seems loan officers and mortgage bankers just have to keep jumping through more and more hoops to satisfy the governments guidelines for “transparent” lending.
Two things, regardless of which side you are on it should not matter what ethnicity you are. I don’t care if you are polka dot, if you are a legal U.S. citizen you should be able to purchase property here if you qualify. I personally do not think you should be able to own property here if you are not a citizen. I don’t think banks have the consumer’s best interest in mind, I think they have their bottom line in mind (as they should). Afterall, that is how you stay in business (not talking about bailouts here). CONSUMERS should be responsible for their own business. I’m certainly not willing to hand that over to anyone else.
There is a need for rules, regs, and guidelines, BUT we seem to have a power struggle between parties. Ethnicity should not ever be a part of the equasion.
I just have to throw this in…if the banks were for the best interest of the consumer, they would have ever done no doc loans. I happen to be one of the people that got one of those loans, fortunately for me and the bank mine turned out okay. Here was the circumstances under which they approved me. Recently widowed (4 months), just lost my job, absolutely zero income. The qualifying factors were, 790 credit score, cash for down payment/closing and I could sign my name. I don’t think the bank or myself had my best interest in mind. I was still just grieving and had no sense of what I was doing.
Marlene, the reason for “ethnicity” on the 1003 is a HMDA requirement. This has nothing to do with the Bank lending money to the Borrower — the Banks did not implement this requirement. This ethnicity question, among others, is for the government policing agencies involved to make sure that the banks are lending to an appropriate range of people based on the local population and they are not lending to just one ethnic group or predominantly discriminating against groups of people. “The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board’s Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB). Regulation C, requires lending institutions to report public loan data.” To get the facts, go to: https://www.ffiec.gov/hmda/ I hope this helps you understand why gathering this information may help stop discrimination! I explain this to my Borrowers and they appreciate knowing why anyone wants to know such intimate details…
Big banks have a whole different set of problems than small mortgage brokers. I really don't have a lot of sympathy for big banks given the lst 5 years have been so hard on small brokers and appraisers. Having said that I have zero respect for Warren. She is the mouthpiece blasting banks while the rest of Washington is taking their lobbying monies. The cfpb hurts main street more than they ever will fix big bank problems. Consumers are paying more for mortgage loans, have less control over the process, and less choice. The only good thing the cfpb has done for me is level the playing field on fee disclosure with TRID. Other than that we do not need a Washington agency that writes all the rules under which someone can get a mortgage loan unless they want to do that with every product a consumer purchases.
I love these people on here who stand up for more government regulations. It really shows their ignorance. I've been a mortgage originator for 33 years and have closed more than 8,000 loans. Banks have never led borrowers to believe that their loan was a grant and did not need to be repaid. This farce that lenders were the ones responsible for people losing their homes or not understanding their paperwork is a lie. Everyone who borrowes money from a bank or a friend knows it needs to be paid back. We would not own a home or a car if it wasn't for someone being willing to take a risk on us and lend us money. So many of you are not willing to take personal responsibility for your actions and instead blame others. All that the new regulations, fees, and rules have done for America is to make credit more difficult to obtain and line the pockets of the goverment. If you don't realize this, here's a fact check: More regulations on something so basic as lending is just another way for government to expand, collect more of our money, employ more folks and control everyone's lives. Wake up.
I'm a realtor who listed and sold several short sales – probably every homeowner I dealt with could have held on to their house if they just could have refinanced at the lower rates. No one qualified for the HARP money…for whatever reason. The big banks were miserable to deal with for the most part. This year I have dealt with two reverse mortgages wilth Wells Fargo and realize that all the jerks in short sales are now working in reverse mortgage arena. Also during the meltdown, banks would sell their REO's at substantially reduced prices if they had an all cash offer. Taking $250,000 all cash when they had an offer for $425,000 in a neighborhood of $425,000 houses. This killed the neighborhood for comps over and over again. I won't even get into credit card tricks. I NEVER reccommend buyers going with a big bank for their loans. Always stick with a reputable smaller mortgage bank or even a credit union. Yes, I'm whining about the past but…it could happen again. I just remember Jamie Dimon saying foreclosure was a blessing and helped get homeowners out of debt.
F & B We have ALWAYS had to provide our best guess on ethnicity/race "by observation or surname" when the borrower chooses not to provide the info. All of the other data is already recorded in every major LOS in use today. So your complaint is meaningless. HMDA reports are generated from the data base in every lenders system; always has been and always will be. The Mortgage Brokers only contribution not covered in the application process already, is that 'best guess' on the extremely rare occasion someone chooses to not voluntarilly provide it. I will state that since HMDA's inception, I have had 1 borrower elect not to do so. I would hope that there are more meaningful subjects to discuss going foward.
Frank: “the banking industry is ALL about, and I mean ALL about, helping consumers understanding the risk.”
Is that really what the banking industry is ALL about? the banking industry is just there to help people understand risk?
no more money needs to be made by the banking industry. according to Frank, they are just all about helping people understand. poor, poor banking industry.
The scars & pain are still too fresh! The banks are not our friends. Unfortunately, the PEOPLE we deal with on a daily basis are not THE Banks! Those are the powers that be. The whole debacle of the short sale, HARP, etc. worked for those who applied “when there was a herd of white elephants going east on Thursday.” We have already forgotten the robo signing $23 Billion settlement. Yes, all this stinks, however, because there are so many scammers, shysters, and fraudulent planners, this is the best we as a nation can do right now. Stay with it, it WILL change. Everything seems to make a 360º turnaround, especially when it is forgotten. I think the Glass-Steagall Legislation should be considered again. The issue is much bigger than the consumer. Laws are made because some people cannot “play by the rules” or use common sense. Stay the course and keep the scammers, shysters, and frauds out! This mortgage fraud/ foreclosure situation must not be repeated….of course it did help with the employment when all these banks had to hire all those clerical people to “delay, delay” the short sale decisions. What a nightmare for all of us!
Wow, great video guys ! Well so much for getting into flipping houses…what do they consider “poor” these days anyway with all the requirements, many more will fall into that category I guess…No wonder the banking system & our country is in trouble with policy “czars” like warren…
BIG RED FLAG! The % of single family home ownership has fallen to 1965 levels! And this with 3 to 4% mortgage rates? In part is because the work force number are at a 38 year low and being on state and federal aid make it hard to qualify for a loan. Now at some point the Federal Government will step in an announce we need to increase the % of home ownership. Then they will again back a fast track program to home ownership!
Every closing that I am doing will have a short survey sent out to the borrower about the "regulaed process" that will be kept in the clients file. If any part of the "regulated process" was disturbing to the borrower because of such things as wait times on closing or the pile of information needed for underwriting, the borrower will also get the address to the CFPB (which is in the Know Before You Owe booklet). The more the consumer complains to the CFPB about any of the regulations or process, the more they will listen. I suggest every mortgage person keep very good notes going forward, from origination to closing.
Brian and frank you are very careful to not ever say anything to put the idiocy of government over regulation on one political party. Do you not think it's obvious to everyone with open eyes and a brain that it is the democrats that see us, the mortgage industry as who they need to protect the consumers from while making our lives harder and it all trickleds back down to the consumer?
Political correctness is creating a really screwed up country, don't add to it.
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You guys are truly out of touch. ..or have been listening to the TBTF banks too much.
Prior to Sen. Warren’s efforts servicers lacked any oversight whatsoever.
As far as origination goes – I’m grateful that I’m no longer embarrassed by the rot that existed prior.
Tight underwriting unfortunately is needed as unfettered Wall St. product placement got us where we are today. If lobbyists are successful in buying TBTF leaning politicians then the industry has to pay the price. Don’t like it? Get money out of politics.
New HMDA requirements…have you guys ever completed a HMDA report? Those extra fields should be easy to add to a
query.
Please, less politics and more substance.
I don’t agree with you Tim. Just don’t. And yes of course we’ve done HMDA. It’s not a matter of how many more boxes are required to be filled in, it’s the nature of those boxes. Just wait until a discrimination issue comes up because a lender “guessed” incorrectly. Thanks for the comment man! Good dialog!
I wonder what interest group have their hands in her pocket. Hmmm…
I usually find your show fun and educational but today not so much. How can you say the banking industry is all about consumer understanding? They are all about making money!!
The CFPB is put in place to protect consumers from the banking industry’s failure of transparency as well as their past shell game of selling worthless mortgage backed securities and being bailed out by our tax payer dollars!! They should be held financially and legally accountable for their past greedy actions and severely policed moving forward!
The more politicians involved the slower and lighter their consequences will be. That sounds like more of the same. Banking lobbyists paying for the freedom to do whatever they want!!
I support heavily policing the banking industry. They are in my opinion, the biggest reason my career and income in real estate has suffered so much!
And,where are we getting all this information on a phone pre-approval where we get the minimum amount of information to check credit and turn around and decline them? It would be great if they at least asked us how it all works before they come up with this stuff!
Seeing a number of mortgage brokers going into real estate. Some in the business for 25+ years. Just an observation.
In California the 1003 has required all of that information to be completed for years. There’s also a box to check stating the borrower does not wish to furnish this information regarding ethnicity. I’ve had borrowers who marked every box and white south African borrowers who marks African-American..Having completed a class on TRID and going over the new disclosures there are glaring discrepancies in how the costs are presented . It’s almost hilarious … Almost . It seems loan officers and mortgage bankers just have to keep jumping through more and more hoops to satisfy the governments guidelines for “transparent” lending.
Two things, regardless of which side you are on it should not matter what ethnicity you are. I don’t care if you are polka dot, if you are a legal U.S. citizen you should be able to purchase property here if you qualify. I personally do not think you should be able to own property here if you are not a citizen. I don’t think banks have the consumer’s best interest in mind, I think they have their bottom line in mind (as they should). Afterall, that is how you stay in business (not talking about bailouts here). CONSUMERS should be responsible for their own business. I’m certainly not willing to hand that over to anyone else.
There is a need for rules, regs, and guidelines, BUT we seem to have a power struggle between parties. Ethnicity should not ever be a part of the equasion.
I just have to throw this in…if the banks were for the best interest of the consumer, they would have ever done no doc loans. I happen to be one of the people that got one of those loans, fortunately for me and the bank mine turned out okay. Here was the circumstances under which they approved me. Recently widowed (4 months), just lost my job, absolutely zero income. The qualifying factors were, 790 credit score, cash for down payment/closing and I could sign my name. I don’t think the bank or myself had my best interest in mind. I was still just grieving and had no sense of what I was doing.
Marlene, the reason for “ethnicity” on the 1003 is a HMDA requirement. This has nothing to do with the Bank lending money to the Borrower — the Banks did not implement this requirement. This ethnicity question, among others, is for the government policing agencies involved to make sure that the banks are lending to an appropriate range of people based on the local population and they are not lending to just one ethnic group or predominantly discriminating against groups of people. “The Home Mortgage Disclosure Act (HMDA) was enacted by Congress in 1975 and was implemented by the Federal Reserve Board’s Regulation C. On July 21, 2011, the rule-writing authority of Regulation C was transferred to the Consumer Financial Protection Bureau (CFPB). Regulation C, requires lending institutions to report public loan data.” To get the facts, go to: https://www.ffiec.gov/hmda/ I hope this helps you understand why gathering this information may help stop discrimination! I explain this to my Borrowers and they appreciate knowing why anyone wants to know such intimate details…
Big banks have a whole different set of problems than small mortgage brokers. I really don't have a lot of sympathy for big banks given the lst 5 years have been so hard on small brokers and appraisers. Having said that I have zero respect for Warren. She is the mouthpiece blasting banks while the rest of Washington is taking their lobbying monies. The cfpb hurts main street more than they ever will fix big bank problems. Consumers are paying more for mortgage loans, have less control over the process, and less choice. The only good thing the cfpb has done for me is level the playing field on fee disclosure with TRID. Other than that we do not need a Washington agency that writes all the rules under which someone can get a mortgage loan unless they want to do that with every product a consumer purchases.
what the heck is in the corner of Frank's mouth?
Freaking rubber band… braces… they come off next month thank God! ~Frank
Freaking rubber band… braces… they come off next month thank God! ~Frank
I love these people on here who stand up for more government regulations. It really shows their ignorance. I've been a mortgage originator for 33 years and have closed more than 8,000 loans. Banks have never led borrowers to believe that their loan was a grant and did not need to be repaid. This farce that lenders were the ones responsible for people losing their homes or not understanding their paperwork is a lie. Everyone who borrowes money from a bank or a friend knows it needs to be paid back. We would not own a home or a car if it wasn't for someone being willing to take a risk on us and lend us money. So many of you are not willing to take personal responsibility for your actions and instead blame others. All that the new regulations, fees, and rules have done for America is to make credit more difficult to obtain and line the pockets of the goverment. If you don't realize this, here's a fact check: More regulations on something so basic as lending is just another way for government to expand, collect more of our money, employ more folks and control everyone's lives. Wake up.
I'm a realtor who listed and sold several short sales – probably every homeowner I dealt with could have held on to their house if they just could have refinanced at the lower rates. No one qualified for the HARP money…for whatever reason. The big banks were miserable to deal with for the most part. This year I have dealt with two reverse mortgages wilth Wells Fargo and realize that all the jerks in short sales are now working in reverse mortgage arena. Also during the meltdown, banks would sell their REO's at substantially reduced prices if they had an all cash offer. Taking $250,000 all cash when they had an offer for $425,000 in a neighborhood of $425,000 houses. This killed the neighborhood for comps over and over again. I won't even get into credit card tricks. I NEVER reccommend buyers going with a big bank for their loans. Always stick with a reputable smaller mortgage bank or even a credit union. Yes, I'm whining about the past but…it could happen again. I just remember Jamie Dimon saying foreclosure was a blessing and helped get homeowners out of debt.
Can we please address Mr. Codray by his proper title?
Its "Dictator" Codray, not Director Codray. Just saying.
F & B We have ALWAYS had to provide our best guess on ethnicity/race "by observation or surname" when the borrower chooses not to provide the info. All of the other data is already recorded in every major LOS in use today. So your complaint is meaningless. HMDA reports are generated from the data base in every lenders system; always has been and always will be. The Mortgage Brokers only contribution not covered in the application process already, is that 'best guess' on the extremely rare occasion someone chooses to not voluntarilly provide it. I will state that since HMDA's inception, I have had 1 borrower elect not to do so. I would hope that there are more meaningful subjects to discuss going foward.
Frank: “the banking industry is ALL about, and I mean ALL about, helping consumers understanding the risk.”
Is that really what the banking industry is ALL about? the banking industry is just there to help people understand risk?
no more money needs to be made by the banking industry. according to Frank, they are just all about helping people understand. poor, poor banking industry.
The scars & pain are still too fresh! The banks are not our friends. Unfortunately, the PEOPLE we deal with on a daily basis are not THE Banks! Those are the powers that be. The whole debacle of the short sale, HARP, etc. worked for those who applied “when there was a herd of white elephants going east on Thursday.” We have already forgotten the robo signing $23 Billion settlement. Yes, all this stinks, however, because there are so many scammers, shysters, and fraudulent planners, this is the best we as a nation can do right now. Stay with it, it WILL change. Everything seems to make a 360º turnaround, especially when it is forgotten. I think the Glass-Steagall Legislation should be considered again. The issue is much bigger than the consumer. Laws are made because some people cannot “play by the rules” or use common sense. Stay the course and keep the scammers, shysters, and frauds out! This mortgage fraud/ foreclosure situation must not be repeated….of course it did help with the employment when all these banks had to hire all those clerical people to “delay, delay” the short sale decisions. What a nightmare for all of us!
Wow, great video guys ! Well so much for getting into flipping houses…what do they consider “poor” these days anyway with all the requirements, many more will fall into that category I guess…No wonder the banking system & our country is in trouble with policy “czars” like warren…
BIG RED FLAG! The % of single family home ownership has fallen to 1965 levels! And this with 3 to 4% mortgage rates? In part is because the work force number are at a 38 year low and being on state and federal aid make it hard to qualify for a loan. Now at some point the Federal Government will step in an announce we need to increase the % of home ownership. Then they will again back a fast track program to home ownership!
Every closing that I am doing will have a short survey sent out to the borrower about the "regulaed process" that will be kept in the clients file. If any part of the "regulated process" was disturbing to the borrower because of such things as wait times on closing or the pile of information needed for underwriting, the borrower will also get the address to the CFPB (which is in the Know Before You Owe booklet). The more the consumer complains to the CFPB about any of the regulations or process, the more they will listen. I suggest every mortgage person keep very good notes going forward, from origination to closing.
Single, UNELECTED director. Much like the unelected, completely unaccountable, Fed. Victory for someone I’m sure.
Brian and frank you are very careful to not ever say anything to put the idiocy of government over regulation on one political party. Do you not think it's obvious to everyone with open eyes and a brain that it is the democrats that see us, the mortgage industry as who they need to protect the consumers from while making our lives harder and it all trickleds back down to the consumer?
Political correctness is creating a really screwed up country, don't add to it.
Me being one-not as easy as I thought when I was doing mortgages