
Not that things were going well or anything, but today the New York Times did a masterful job of taking mortgage brokers to new lows.
Look, I will be the first to tell you that there were a lot of shitty, unscrupulous brokers but I don’t believe that they made up the bulk of the industry.
Furthermore, Brokers are just that BROKERS! They don’t create the exotic and risky mortgage products themselves. Nor do they underwrite the applications. So trying to put much of the blame on the GLOBAL MELTDOWN on the mortgage broker is insane, innacurate and unfair.
I am not trying to participate in the “blame game”, but hell if the New York Times is going to leave readers with the impression that mortgage brokers as a whole are lying, shady scumbags responsible for this collapse, then I must speak up. And so must you too! In fact, if you don’t call your local paper, radio station or any other vehicle for mass media, and SPEAK UP in your market, you will soon find that you HAVE NO MARKET left!
Banks have always tried to figure out how to shed themselves of the broker connundrum. On one hand they want an unlevel playing field (yield spread disclosure), but on the other they recognize that Brokers account for over 60% of residential origination. THIS IS THEIR CHANCE! The banks will use this opportunity to stoke the flames and keep the media talking about the shitty mortgage broker scumbag. Enough of that, and you can say goodbye to the broker business. Leaving you with the great opportunity of working in a cubicle for a big bank or to find a new career. Are you listening? Do something or you will find yourself doing something different for a living.
Here is the shittiest part of it all: The American consumer is the loser here. Gone will be LICENSED professionals SHOPPING COMPETITIVE RATES on their behalf. Instead they will be left with the Bullpen run banking outfits. How do I know they are Bullpens? I TRAINED THEM!!! (Sorry Brokers I was a double agent and trained whoever cut me a check) But I am a solid supporter of the CHECK and BALANCE that Brokers bring to the lending landscape.
Get your independent insurance broker to speak up for you too. Because you can best believe the Insurance companies are watching this closely to see if they can figure out how to get rid of the brokers in their business.
These companies want Brokers out of the way, not because of the added money they have to pay out, rather it is because the BROKER CONTROLS THE CUSTOMER and maintains the loyalty and drives the behavior and THAT is what they want back: Control!
Write the New York Times and tell them that this story stinks and in no way was a balanced piece.