All Posts Tagged With: "ethics in mortgage lending"
Fee Splitting
I recently wrote about a common question I often receive in which an unlicensed LO asks a licensed LO to act as the originator on a transaction, and pass part of the origination fee back to the unlicensed LO. Read the story here.
What are the possible consequences for the licensed LO, the unlicensed LO, the consumer, […]
Solutions to the Mortgage Lending Crisis
The mortgage industry crisis is a gift. Mortgage lending can emerge from this mess and transform itself. I have been co-writing about predatory lending and the ambiguous professional status of retail mortgage salespeople for over 7 years. The industry has traded consumer respect for massive profits. It does not matter where you work: banker, broker, credit union, consumer […]
13Jun2008 | mf | 8 comments | ContinuedAre Mortgage Loan Originators Professionals?
When I ask the question “Are loan originators professionals?” to a group of loan originator students in ethics classes, almost everyone says “yes.” Anyone can do their job in a professional manner (adjective,) but not everyone is a Professional (noun.) Is your barista at Starbucks or the person who bags your groceries a professional? If […]
13Jun2008 | mf | 28 comments | ContinuedThe Subprime Meltdown
When I entered the mortgage industry in 1985, Conventional loans were only for those who could put down 10%. Most folks opted for an FHA or VA loan. There was no risk-based pricing. Everyone received the same interest rate on their mortgage loan whether they had great credit or a few late payments. Homeowners with […]
13Jun2008 | mf | 5 comments | Continued