Loan officers are the real scum!
As Wall Street takes all the heat for all the economic problems, I'm wondering why loan officers are not getting the same bad publicity? As a result of the stimulus package and homeowner rescue, these same loan officers are going to be raking in commissions in another refinance boom. Loan officers need no credentials and don't have to pass any tests, yet they are basically getting a free pass. I've thought about changing careers, but I think loan officers are the scum of the earth.
Here's a novel idea: all commissions generated by this next wave of refinancing should be paid to the government. Loan officers should only get commissions on new home sales where people are truly qualified to be purchasing a home.
The loan officers work for the banks (i.e.. parents of the brokerage firms). Its not the loan officers, its not the wall street brokers, its the f'n banks. You can say its all the same thing but its not. The only thing the loan officers did was work for commission and maybe drink the koolaid. I dont think most of them were smart enough or took the time, to think thru what a no income check mortgage meant, they just assumed that the client wouldnt take the mortgage if he didnt pay it. If anything the people who took these loans are more at fault than the loan officers - but mostly its the banks that should have known better - JMHO
There were plenty of loan officers that worked for small companies brokering loans to a variety of banks. This is the equivalent of saying an independent broker who sells an Oppenheimer mutual fund works for Oppenheimer?
I know many loan officers who were making $300-800k/year during 2002-2005, and some of management was making millions. It was an absolute joke. I agree that the buyer of the home should be held accountable, I just don't want to see another windfall for loan officers who barely have to prospect and have no education. The phone will just start ringing off the hook when rates fall below 4%. They become order takers, and it's similar to paying hundreds of thousands for a McDonald's employee.
so if a rep at an indy sells a crapload of eia's (or anything else unsuitable) it is not his/her fault, but his b/d?
blame goes to all involved. i have a college buddy who tried getting out of the refi business 4-5 months ago. he readily admits he cannot leave now, too much gravy to be made as rates continue to drop and all the crappy loans need to be replaced.
Its a mortgage, not an EIA. More important, the banks are at fault for
this whole mess we are in. My impression of most mortgage brokers is
that they really dont know better. The banks know better. And the folks
that run these banks, and destroyed lives, from Ken Lewis to Chuck
Prince should be locked up along with the regulators responsible for
them. I still cant understand how this whole thing happened. When you
think about it, its insane.
Going after the mortgage brokers would be like FINRA allocating
resources to persuing a $5000 complaint from a client of a ML broker at
the expense of ignoring Madoff. (Which they basically did)
Mortgage brokers didn't know any better b/c they were bagging groceries prior to originating loans. Ignorance doesn't get you a free pass. Most loan officers are people that have changed careers multiple times, much like realtors. They were chasing the quick buck and they didn't care if a homebuyer was qualified or not.