Tag: "Fiduciary Duties"

Fee for Service

| October 19, 2008 | 30 Comments

In Washington State, SB 6381 mandates Fiduciary Duties for mortgage brokers and the LOs working under mortgage brokers.  At the end of the bill, there is a small but powerful addition.  Brokers/LOs can now charge a fee for service. Before this law passed, the only way brokers/LOs could earn a fee is when a loan closed [...]

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Informed Consent Process

| October 19, 2008 | 22 Comments

This UW link provides a brief explanation of the informed consent process in medicine.  Is it possible to use these elements to build an informed consent process for the practice of mortgage lending? From the UW:  What are the elements of full informed consent? the nature of the decision/procedure reasonable alternatives to the proposed intervention the relevant [...]

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Informed Consent for Mortgage Lending

| October 19, 2008 | 31 Comments

In Part 4, of a 6-part series, the Mortgage Professor states, as follows: “In sum, regardless of why borrowers refinance, the question of whether they receive a net benefit from it is for borrowers alone to answer. Loan providers do not have the information needed to second-guess them.” He goes on to say that “on the [...]

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The Meaning of Fiduciary Duties

| October 8, 2008 | 30 Comments

The president of the National Association of Mortgage Brokers made a speech before Congress on March 27, arguing that “NAMB remains opposed to any proposed law, regulation or other measure that attempts to impose a fiduciary duty, in any fashion, upon a mortgage broker or any other originator.” NAMB’s president goes on to explain why [...]

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Loan Modification Fees: Is it Justifiable for a Fiduciary to Charge for a Free Service?

| September 3, 2008 | 73 Comments

Mortgage brokers and loan originators have become curious in learning about loan modifications. When I ask why, they say that they’re hearing there’s good money to be made doing loan mods.  What? Wait a second. I thought loan modifications were done by the lender for free. More and more spam is popping up in my spam bin targeted at LOs [...]

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Fiduciary Duties for Mortgage Brokers and LOs

| June 20, 2008 | 46 Comments

In October of 2007, Andrea Negroni wrote an article for Mortgage Banking Magazine titled “Mortgage Brokers–What Fiduciary Duties Exist?” Negroni provides a framework for mortgage brokers to begin learning about case law already on the books where courts have imposed fiduciary duties on brokers. The National Association of Mortgage Brokers has been quite insistent that [...]

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Solutions to the Mortgage Lending Crisis

| June 13, 2008 | 45 Comments

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 [...]

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