The LO Compensation Fed Rule Scandal
The Fed Rule on Loan Officer Compensation was written and is based on four reports. Two were pro-broker and two were anti-broker. Well the Fed has opted to ignore the more scientific pro-broker studies, in favor of one extremely shallow study, and another that was conducted by two billionaires that got rich in the sub-prime market who now head the Center for Responsible Lending (CRL). Really? Yes really. Honestly this is going to make you sick. It won’t surprise you at all, but it will once again, greatly disappoint you in the “good ol’ boy club” we know as our Government.
Only this min found this site The LO Compensation Fed Rule Scandal | The TBWS Daily Show by way of Yahoo… a nice thing… All the best Web Site Builders
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\A Broker\: what you say sounds nice in theory but isn’t actually what happens most of the time. Instead, most of the time, the broker doesn’t send the customer to the bank offering the best rate, the broker send the customer to the bank that will pay the broker the highest fees (including \yield spread premium\).
Brokers have no fiduciary duty to the customer taking out the loan. You may be an honest broker who tries to do best for the customer, but there are huge numbers of brokers who only care about doing best for themselves.
Finally, the fact that brokers get paid a percent of the loan is ridiculous. Fees should be flat-rate based on FICO score.
@Thisson
That is not “theory” that is how the broker end works, and what you said doesn’t make a lot of sense. You said that “the brokers send the customer to the bank that will pay the broker the highest fees (including \yield spread premium\)”. Well first there are no other fee’s the only fee that a broker collects from a bank is the YSP and what you said is a complete contradiction because in order to make more YSP that bank would have to have better rates then another bank, you also seem to be completely overlooking the fact I brought up about how brokers HAVE to disclose their yield spread where banks do not, a bank could be making 4 points off of you in yield spread and they do not have to disclose a single dime to you. Now if you were dealing with a broker and your received your GFE and saw a huge yield spread then you can very easily see if they are bumping the rate up to make more money.
Lastly you said how it was “ridiculous” that brokers get paid a percent of the loan, well I hate to break the bad news to you but banks get paid the same exact way. It doesn’t matter if your a bank or a broker if any points are being collected whether its front end or back end its all going to be based off of the amount borrowed.
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@ derek
Whats funny is people like to point at the “mortgage brokers” saying they are the ones who are the crooks in the industry when the way the industry now it couldn’t be further from the truth. The biggest negative thing that people always say about brokers is that we are middle men and why would I go to a broker when I could go to a bank. Well sure you are technically right, a mortgage broker will take an application and based on your specific needs and situation i.e. credit score, loan to value ect. place you with the best lender and most importantly a bank who’s guidelines you fit there by increasing your chance of getting your loan approved. All a broker is going to do is take your application and say “Mr. Smith your loan has been placed with suchandsuch bank this is the rate, and if agreed upon sent directly to the bank for underwriting no more, no less. Now being that you are now going to the bank through a wholesale channel you are subject to better rates then going to a retail branch. The other option is you can go to a “bank” now chances are that bank doesn’t even have the money to actually lend you, most banks take out huge monthly lines of credit called warehouse lines in order to actually fund their loans and now being that they are the “bank” they also now get to make up their own rate sheets, so what do they do they bump up the rates higher then what they should actually be, and why do they do this you ask? Because the same day they fund your loan they sell if to completely different bank for a profit. So now this “bank” who is probably telling about how they are a “direct lender” is borrowing money from one bank to give you a loan then selling you loan to a completely different bank in order to pay back the money they borrowed in the fist place and they get to do all this without disclosing a single thing to you the borrower because they are a bank. So tell me who is really the middle man and the crooks here?
Secondly if you want to talk dollars and cents about us so called mortgage broker crooks lets look at the facts, we as mortgage brokers have to disclose EVERYTHING to our borrowers and that includes what we are making from the bank, so when dealing with a mortgage broker you know absolutely everything before you even order and appraisal and that includes compensation, banks on the other hand do not have to disclose anything so you can be told you are getting an amazing deal meanwhile the bank is actually making 3 points off you and you would be none the wiser. Another thing to point out is that a lot of broker do not have the same overhead as these banks do I mean who do you think has to charge you money a mortgage broker or the bank with $50,000 a month in rent and 30+ people on salary? All of those costs are built into the rate they offer you and fees they charge i.e. application, processing and underwriting fees. All in all as a small mortgage broker my closings costs are generally about $600-$1000 less all the “banks” in my area and my rates are generally .25%-.375% lower, and I do it all being 100% honest and disclosing everything to my customers. So again I ask who are the real crooks here?
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The public sector unions they spend a significant amount of the union dues getting their pet politicians elected, that they will later negotiate their contracts with. There is somehting wrong with this picture, isn’t there? If the unions get too aggressive with a private company they become parasitic and devour the host, killing both the company and teh jobs it provides. With the public sector the host is…us!
Amazing, the owners of World Savings- home of the Stated Wage 550 Fico “common sense underwriting” option arm is allowed to even be near anything related to the industry.
If anything their program helped other banks to create more of these loans which lead to even more foreclosures.
When I hear things like this I wonder why I am fighting anymore.
You guys hit it on the head!!!!!
The Sandlers cleaned up and felt so bad they donated half the money!!!
Watch the Video on 60 Minutes….
CRL, PLEASE
http://www.cbsnews.com/video/watch/?id=4803928n&tag=related;photovideo
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Just reviewed the Federal Reserve Document. I’m not a broker, but have a broker as a client for my marketing consulting business. I also do marketing consulting for doctors, lawyers, restaurants, bike shops, bakeries, general contractors, manufacturers, importers, etc.
Why should a broker have to tell all the details of his compensation when no other business has to do so. A bike shop doesn’t sit down with the consumer and explain what part of a $3000 bike is profit to them, profit to the importer, profit to the manufacturer. A doctor doesn’t explain what his hourly rate is or how he arrives at his net profit for doing brain surgery.
We have a criminal enterprise calling itself the executive branch of our government and another criminal enterprise called the Fed that is running the show with almost no control. 60 minutes won’t do a show on this. They are part of the conspiracy.
The answer to your question is easy and obvious. Because high-power brokers keep breaking the rules. As a result of their inability to police themselves, the government must step in and regulate them.
Lew,
Really, and I supposed the indians where cold so the government gave them blankets with smallpox to keep them warm….oh yeah and the Gulf of Tonkin attach was by the Viet Cong, and lest I forget, WTC building 7 came down by itself.
The Constitution (which this administration uses as a door mat) was created to protect us CITIZENS from an overreaching GOVERNMENT. Who the F*(k is regulating the corrupt government?????????
Great to see someone outside the industry asking that age-old question…but the tricky part you missed is that ONLY brokers have to disclose their ‘price of money’…’bankers’ do not…hmmm, I wonder who writes these rules?
Sounds like some cry baby mortgage brkers made this video. I glad these scum bags are out of business. And yes they had a hand in the housing melt down…….Remeber giving bad loans to people that could not afford homes? Or did we forget that? Conspiring with apprasers to over appraise home. Nice try on the spin.
obviously you just get your information from main stream media and have not educated yourself at all regarding how the lending and mortgage industry works. I am an appraiser and just because I say a home is worth X amount doesn’t mean anything. The banks have tons of checks and balances and can cut values, push loans through, have second appraisals done, etc. At the time when appreciation of homes were going through the roof it was the banks who gave the money. Not the appraiser and not the brokers. Also everyone who signs their docs has a breakdown of what they are paying every step of their loan and it’s shown and can even be explained further if they had questions. How come the people accepting the money have no blame and the banks that were giving no doc loans, neg am loans and even incentivising the entire industry to push these loans. And then when the s*^^t hits the fan they go after the people offering the bank programs and the people who reporting what homes were selling for (appraisers don’t make the market you idiot they only report it and there may be some crappy and unethical appraisers but for you to say the whole industry is corrupt just shows how dumb you are.) And then the banks and congress gets together to fix the problem and they are cutting out competition, duplicating oversight committees and doing everything to make everything take longer and cost you (the consumer) more money at every level.
It is also cutting more and more people out of home ownership because it is limiting where you can go to get money.
For you to blame the wrong people and take your eyes off the real culprits just shows how well propaganda media in the mainstream of America becuase you are believing exactly what they want you to. I would say more to you but since you are just a lemming following the whims of the powers that be I don’t know if you would have the intellect to think critically and objectively
Chris I agree with you wholeheartedly. You are one of the first to voice what actually occurred before and after the value of homes inflated. I worked with a broker when Lender Acct. Executives flooded our office pushing the 100%stated and no doc programs (with incentives).
What is so sad is that the current homebuyers seeking to purchase a home are being penalized with overly strict credit and approval guidelines, higher FHA MIP and PMI rates. But as always, the low person on the rung – the loan officer – is blamed totally. In truth, the blame is shared; lenders who offered, approved and bought these loans, brokers and mortgage banks who originated them and the homebuyers who knew they couldn’t afford the homes.
Hey Derek….watch Fox sometimes, and not all the Liberal news stations….oh yeah, learn how to spell appraisers….your just a subprime citizen
What a crock. Do you really think that LO’s had a hand in the housing meltdown? That is like saying that 7-11 is responsible for BP’s oil spill. “Hey, they needed the oil for the gas”.
Do you disclose your net income after expenses to your clients.
Here is another thought. Noone forced anyone to sign anything. Read the paperwork. It is all on the HUD/GFE. And if you are saying that it was unfair, maybe…..but it is the responsibility of the borrower to read the paperwork and understand what type of loan is being offered. I can’t take my new car back to the dealership and say, “hey, this was/was not supposed to have this”. I signed the paperwork, I’m responsible for the loan. If I want to sell the car and it’s worth less than what I owe, I have to make up the difference. Same with a house.
I would certainly like to hear from you. My phone numer is 832-771-7006 I am a Mortgage Broker. It is folks as yourself that does not understand the Industry that needs a 5 min. education on our business. If your loan Officer had your home over appraised>>> it was also the lender that underwrote that loan that did not catch it. It was also your real estate agent that allowed it to happen. It was the wall street folks that also allowed the program to exist to begin with. call me please
This Scum bag has been in the business for over 28 years. I hate it that you feel like we are scum bags. But here is one thing I would like to give us credit for. I am so proud to think that the public out there thinks………. we have the authority and the means to come up with and launch these programs that killed the housing market. If I had that kind of power do you really think I would be sitting behind a desk talking to folks that did not qualify for a normal loan. It is sad to hear you think I am that powerful!
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Nice work guys! This is one of my favorite message you guys have put out. Way to uncover the truth behind the madness! Keep up the good work.
What everybody seems to miss in all of this bad mortgage business is that the Brokers did not make the ALT A and Sub-prime products. The products came from the big banks and wall street. Still the Brokers are getting the sharp stick in the eye and the B/Bs and W/S are all getting bonuses this month and the Brokers are getting thier compensation reduced. What a country. God bless america. UGH.
I agree. What is really bad is, the real estate community pushed value to insane prices, ask for value based on trend, and would not consider accepting my clients approval for and FHA 30 year fixed back in 2005, 2006 & 2007. All I know is HUD should take a lot of blame because thet allowed this to happen. You would think they would have had some measures to control how high a property can go in a year like no more than 7%. The defaulted loans have always been a part of this business but because of good police measures FHA has with the appraisers, we were able to handle with a little insurance and MIP in place!
It does seem like the comp plan goes against free trade? I wish i was smarter and had money or I would take this on myself!!
“Keep up the good work”
Scott
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Elizabeth Warren is my heroine. Here she is:
http://www.youtube.com/watch?v=akVL7QY0S8A&feature=related
great video, great point easy to understand
criticism: the alternative appearance of the two men is confusing, I thought that it was the same man changing his shirt as a kind of novelty, I watched twice and they really are two men, white shirt has rings on his fingers and brown shirt doesn’t. I think that one should be the anchor and introduce the other who takes the role of the bad guy.
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I’ve been through a lot of changes in this business and these videos pissed me off enough to send letters to all of the senators, congressmen and representatives in my state AGAIN today. Not that any of them will read them but at least I tried. It’s sad to see so many people are going to be out of a job or have to change employment and leave a company they love. It appears my only choice now is to gain 300 more pounds, have four or five more babies and apply for welfare. At least the government cares about fat lazy slobs that crank out the babies they don’t take care of so they can get free money and health insurance.
I hope Monder will accept my friend request so I can get a dime bag off him perhaps.
@competitionbenefitsconsumers thanks for the template. I adapted your version and posted it on my mortgage blog, activerain, tweeted about it, etc.
If you guys want to make a difference and don’t have any $$ invest some time and write your thoughts down about how you feel about this regulation. Spread the word. Tell others.
Inspire your colleagues to spread the word.
The fed is basically taking away consumer options on how they finance their home. Take the idiots out of the equation and look at the result. Consumers have less choice on how they finance their home. That is bad.
Talk about it with your friends that aren’t in the business and explain to them in your own words how this impacts them & you. Then write those words on a blog and share it with others.
Telling these guys to submit their video to 60 minutes is merely passing the buck. Get off your ass and say how you feel.
….. Or wither Ye into the dying light.
@competitionbenefitsconsumers thanks for the template. I adapted your version and posted it on my mortgage blog, activerain, tweeted about it, etc.
http://jbermangroup.com/2011/03/email-sent-to-colorado-senators-udall-bennet/
If you guys want to make a difference and don’t have any $$ … invest a little quiet time and write your thoughts down about this regulation. Spread the word.
Inspire your colleagues to do the same.
The fed is taking away options on how consumers finance their homes. That is bad.
Talk about it with your friends that aren’t in the business and work at explaining to them in simple terms what is happening. Then use that discussion as the basis for putting those thoughts on a web site so that you may share it with others.
Telling TBWS to submit this video to 60 minutes …. and then moving on with your day doesn’t accomplish anything. Hope is not a strategy. Get off your ass and express how you feel.
….. Or wither Ye into the dying light.
The complete game plan to what is happening can be found in the book “The Creature from Jekyll Island”. Anyone who has read that book understands that the Federal Reserve was put in place to fix pricing and eliminate competition for the major banks and shareholders. If you want to stop being surprised by all this, read the book and you’ll know exactly what is planned. Hang on!
Thanks for the reporting. Keep it up. You’re making a difference.
The other two videos I had in my post that are really good to help other people understand more about the FRB and the ultimate consequences we will all suffer if this conspiracy continues:
• Federal Reserve (only 9:52 min)
http://www.youtube.com/watch?v=by430chzT98
• FRB effects on ecomony (only 7:08 min) A MUST WATCH VIDEO!
http://www.youtube.com/watch?v=2N8gJSMoOJc
This article was published in the Baltimore Sun by Eileen Ambrose on March 21, 2011 Subj: Federal Reserve & unscrupulous mortgage brokers
here is the link: http://articles.baltimoresun.com/2011-03-21/business/bs-bz-ambrose-fed-rules-20110322_1_loan-originators-mortgage-brokers-brokers-and-loan-officers
Federal Reserve adopts new rules to protect mortgage borrowers
Mortgage broker industry predicts catastrophe
March 21, 2011|By Eileen Ambrose, The Baltimore SunDuring the heady days of the housing boom, unscrupulous mortgage brokers steered trusting borrowers into overpriced loans to earn bigger commissions.
It was one of the reasons the housing market tanked, taking the economy with it. Now, several years later, new Federal Reserve rules are set to kick in to eliminate this practice by restricting how loan originators are compensated.
The industry is resisting. The National Association of Mortgage Brokers sued the Federal Reserve Board this month in an attempt to prevent the new rules from taking effect April 1. The trade group predicts the restrictions would cause “immediate, devastating, and irrevocable harm” and ultimately lead to the industry’s extinction.
But borrowers need the protection. Navigating the mortgage world is difficult. In a report last fall, the Federal Reserve found that many consumers are unaware of how loan originators are compensated and the potential conflicts of interest.
“Consumers often wrongly believe that brokers have agreed or are required to obtain the best interest rate available,” according to the Fed report. And that misperception, the Fed says, can lead them not to take steps to make sure they are getting the best deal.
I sent this email to Eileen:
Regarding the article you took credit for in the Baltimore Sun on March 21, 2011, please take just 30 min of your time to watch these 3 short videos:
http://tbwsdailyshow.com/2011/03/22/the-lo-compensation-fed-rule-scandal
http://www.youtube.com/watch?v=by430chzT98
http://www.youtube.com/watch?v=2N8gJSMoOJc
If you are going to publish information for the public to read, I implore you to at least be educated and correct about what you are writing. After all, there are so many consumers and citizens whose careers, livelihoods and financial futures will be significantly and detrimentally altered by the FRB LO Compensation Rule scheduled to take effect on April 1, 2011. I would sincerely appreciate your time to watch these videos to become informed about the truth behind this Rule and hopefully to publish a corrected article.
In light of your responsibility and duty as a journalist to make sure the information you write is presented in a fair, balanced and truthful manner, I look forward to your reply and subsequent article addressing this impending Rule.
Please copy and also send to:
eileen.ambrose@baltsun.com Personal finance columnist
laura.smitherman@baltsun.com Head of Business News
hanah.cho@baltsun.com Finance/banking, energy and gambling
AND
to any other party/politician/consumer/citizen, etc. who is ignorant about the truth and who values democracy.
Unbelieveable, the article states, Federal Reserve adopts new rules “to protect mortgage borrowers” …LOL, what a joke!
Did the Balt Sun respond to you??
Terribly irresponsible article…. Lets get the word out
The 2009 Macro Study look at this because it is interesting………
http://www.federalreserve.gov/boarddocs/meetings/2009/20090723/Full%20Macro%20CE%20Report.pdf
The 2008 Macro Study
http://www.federalreserve.gov/newsevents/press/bcreg/20080714regzconstest.pdf
Someone please compare and contrast because they each have very interesting tidbits hidden throughout……
Response to Andy @ 12:03 pm. Andy, to me bargaining rights ensure a safe workplace and humane treatment and living wages – unlike sending troops off to war without the right protective gear which has happened.
For one collective bargaining led to taking kids out of the workplace and there’s many, many more things that collective bargaining has done to improve life for us all – and created a true middle class.
From wiki again : Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements which regulate working conditions. Collective agreements usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs.
I thought conservatives did not like collective bargaining what is going on here?
Hahahaa, I don’t know what I am politically – I don’t believe in labels, it’s just a reason for bias. I just believe in knowing the differences between right and wrong. Liberal in the old sense of the term maybe? Is there such a thing as progressive liberal? hahaah. Have a good night. I don’t believe in political terms, I only look at the character of those involved and I don’t let political affiliations or tags cloud my judgement.
The current argument over collective bargaining is focussed on the Public sector. Setting aside what Private Sector unions did to America’s auto and steel industries, here’s why Public Sector unions are bad for America.
In the private sector, unions organize against management/ownership, because that’s who pays them. In the public sector, unions organize against… the public… because that’s who pays them. Nothing good can come of that scenario.
There should be NO UNIONS in the public sector! Why? Simple. In the private sector the unions have a ‘governor’ preventing them from asking or receiving too much…at a certain point the employer will have to lay off workers OR go out of business if the demands get too ridiculous. BUT in the public sector, the politicians simply raise more money with HIGHER TAXES…why would they do that? To get the money BACK FROM THE UNIONS IN CAMPAIGN CONTRIBUTIONS…in other words, to buy their votes…so they can raise more taxes…get it?
Yeah, it’s socialism for the elite 2% but kleptocracy for the rest of us.
Jeez Louise, gov cheese freeze. Like the Iceland banks who used herds of lawyers to block gov regulation, any regulators who had a solid argument were hired on. 1/3 of the regulugs began working directly for the banks.
Watch the 2010 movie, “INSIDE JOB,” and weep.
We don’t need Bush /Clinton / Bush to rob & pillage; we have the next new fresh face, Obamarx. I think I mentioned that if you watched The McLauglin Group a couple weeks back, they opened comparing Kaddafi, Charlie Sheen and Bent Bernanke. They said Bernanke was the worst.
Obviously once they got their billion, they could buy into the club. The Fed is privately owned and totally crooked.
The whole concept of fascism is for the gov or corporations to take over the other. We’re living under a banker-run oligarchy, so what do you expect??
Next, each little group with their own agenda (e.g., realtors, brokers, the NRA, whomever) lobbies as best they can. They have to, because the powers are tainted.
How do you like this HOPE AND CHANGE of shooting and bombing other countries while on vacation?
Obviously this guy can’t pass NMLS testing… that is why he is at a bank!
Sounds like Glen beck talking, ok maybe I will forgive you guys after pussshing the builder business a week ago.
This judge in the lawsuit needs to see this video have you got it over to the namb and naihp lawyers?
In 2009 the BIG BANKS lobbied for, and received, a change to the mark to market accounting rules. Now they only take a book loss at time of actual foreclosure.
During the ensuing years one “obstacle” after another has come forth slowing the rate of foreclosures (holiday moratoriums, robo-signing, etc). Some buyers have been in their homes, not making payments, for 18 months or more.
During this period of planned procrastination the Fed. has been busy changing the lending environment to benefit the banks (MLO licensing, Loan Officer Comp. Reform).
Add in the latest revelations of back-door hiring of dissenters by the FRB and you start to see a real conspiracy theory mounting.
The banks are in major trouble and the Fed. is trying desperately to get a back-door bailout to the banks through a major increase in their lending profits. At our expense
I think John Grisham is writing a book about this
Donating another $500 to NAIHP / NAMB!
I don’t understand the big deal guys? This goes under the same rules as GFE2010 and Y2K. In 90 days, you won’t even remember this as a blip. I think most brokers have figured it out by now. BTW, with banks continuing to increase there margins and profits, I am too. Go Banks! I am right behind you!!!!
for those looking for page 32 of the fed rule. here it is. http://www.box.net/shared/p47lan9mla
Thank you, Brian, for making this available. Could you post the url to this same document where it resides on the FRB’s site? Haven’t found after several search attempts on FRB site using docket #s, codes, cites, etc. They make it so easy, don’t they? Keep up the good work!
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I meant to say that the same rate BofA charges 1.5 points for I offer for zero points, plus cover some of my client’s costs. Sorry, I was (and am) so angry that I forgot to mention that.
This makes me sick. GREAT research gentlemen. All someone has to do is walk into any BofA branch and see the rate that they are charging 1.5 points for PLUS closing costs is the SAME rate I offer my clients, and I also cover some or all of their fees. What more research do you need? Now, I will no longer be able to even cover my client’s fees. How much socialistic, unconstitutional meddling are we going to allow creep into our livelihood? This is a shot below the water line to all brokers who feed and shelter their families in this industry. Forget sending $50 to NAMB or NAIHB to feed their worthless, ineffective, self serving interests; this could (and should) lead to blood in the streets!
I’am a wholesale and retail lender. As of April 1st, wholesale will not be part of our business model, risk factor due to compliance now will end that run. I think a good wholesale lender and broker is a great relationship and would prefer to continue that route. However I will say, that your lending decision when you have 1 million dollars to lose (new HUD net worth requirement) vs the traditional $63,000 for broker, you tend to make different decisions. I see some of the garbage that our brokers would toss at us and wonder why we won’t do it (saying other lenders will do this), at least with my retail guys, the loan is more transparent from start to finish. On our broker loans, it’s a game of cat and mouse, what could they slip through vs what we would catch. Again, most of our brokers are very good, but still, we have to be on our toes all the time. My quality of loans is my sole survival with my investors, warehouse lines, and my D.E status. If I lose any of those, I’m done. I believe this is HUD’s and FED’s intended goal, I’ve always had good quality, but since compliance and risk is through the roof and I’m 100% responisble for it, I’m only going to deliver loans I have full control over from start to finish to my investors. HUD and FED believes quality and lending decision will have a higher quality if your putting your money on the table based on the loans you deliver to them. Losing $63,000, not a big deal to me, losing 1 million dollars and 2.5 mil starting in 2013, cant risk on 3rd party deals anymore. Again, i wish I could continue wholesale, but I need to be 100% sure of my quality going forward, I know I can’t catch everything on the wholesale channel nor retail, but I will eliminate the loans that I don’t originate to try and reduce my risk.
Brad, What could a broker possibly slip through after the rectal examination that is done on each customer? Seriously. Everything is verified from beginning to end in detail.
Exactly!!!! If you scared, just say you scared. One wholesale lender goes away, another one will replace it.
I can see what you mean, if the banks are picking your appraiser it’s your ass and not theirs on the line for a skippy valuation.
The banks should be retaining 10% of the risk at least and they’re not – but you guys have to. Talk about rigging the game. More racketeering imho
Whatever rad-
Sorry, gotta go. My W-2 printing machine is on the fritz!
Your an idiot and completely uninformed, uneducated whiner!
thanks for watching
Is that you honey?
Lol! I believe it is spelled “you’re.”
I hear you brothers. I appreciate your voices on these matters. I’m writing comedy and will call on you when I get my first film funded. And yes, the decimation by the trillion dollar bail out, allowing retail to continue to obtain hundreds of thousands of dollars in interest while appearing to “lower the cost” by claiming “no escrow fee… no title fee..” ect.. is just bait and switch… Escrow will always get paid, Title will always get paid… throught the hundreds of thousands the lenders are charging on your average $500,000 loan… but the public is expected to be so ignorant that they think “great… I don’t have to pay escrow now… these people are wonderful” what a crock….. we’ll get past this… thanks for your work friends.
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I agree that there is probably collusion and that the studies used were flawed (what research really isn’t skewed to the opinion of the person who wants the research done) but the real question is what are you prepared to do?
My friend Sean Connery says it best:
http://www.youtube.com/watch?v=YVgest6UlLU&feature=related
I’m ready to send Dodd-Frank to the morgue.
Good stuff, keep up the great work guys!
arrrrrrrrrgh! this makes me so angry, had an awesome business w/ 21 LO’s as employees and to watch this industry that I love disinigrate, makes me pissed! welcome to mis managment within our government.
doitright must have gotten his LO comp package back and is not happy with it. marking up bank funds?? i been cleaning the bankers clock on price, service and flexibility for 12 years….dont see it changing
Please forward this video to your local news channel.
Maybe someone will run the story.
way to go pedro, help us out.
I have 38,000 twitter followers, and usually tweet your video.
I can not believe there are people suggesting that this will be good for the consumer. Not all brokers are greedy. At least now the consumer has a choice to shop for a good deal. After April 1st, the banks will screw the consumer wether they like it or not.
Get real here is the real deal , lets say someone came back and was buying d paper again . Lets say some small firm in California had the way and funds to do this . Well who would sell this product , not the banks that are regulated daily and monthly and care about their image it would be the greedy broker looking to cream the customer. Everyone knows that a banker has more class and respect then a broker what sounds better at a cocktail part Hi I am a broker with no funds of my own I just take funds from a real banker and mark them up . Sorry but the broker put themself out of this business . Here is a good example if it goes back to the way it was you can all orver mark up your price again and shoot for 3 points on the deal . Are you not happy with 1.25 % of a few hundred thousand , if you had the choice to bump the rate and get 2% you would so lets stop the crap it is good for the consumer . I am a consumer also and this is a great thing for the consumer and any politician will back me . I do not agree with the government regulating someones pa but I also dont agree with the BS that you want to give the customer a better deal if that was the case cut it back to 50 BPS and close it that way . The rule says yo can make less not more !
your comments exude ignorance….the big banks are not using their own funds, they sell off the securities like everyone else, and we are compared on a daily basis to the BofA’s of the world, and I close loans at cheaper costs and better rates everytime. If you are superficial enough to listen to someone from Corporate America at their word, then I find you very naive. Have been selling loans for 21 years competing against the big banks, and your comments couldnt be farther from the truth.
Well interesting I have 4 friends that are wholesale reps to brokers , they show me the pricing I blow it away and when I shop BOA they blow it away also . Yes we sell it off but we have more skin in the game as that is the FEDS number one goal so we are concerned about D paper
the skin you are referring to is our gov’t bailout money!!!! think about it. And the big banks do not beat our aggressive wholesale channels. You ever sneak a peak at lest say Provident Funding Conventional products? are you saying the big banks beat them? smart brokers align themselves up with well priced wholesalers and we simply do not get beat….I get customers, mostly from Chase and Bank of America complaining about turntimes, or for easier terms, bad service, and they love my quick replies and knowledgable expertise. I have created specialized Excel spreadsheets for the business that I have not seen duplicated by my fellow loan officers. This business really comes down to the individual performance on the loan officer level, but these new rules are not a good enhancement in the consumers interest.
I am at 4.75 and a true zero points with only $499 in my origination box ( 30 yr conventional ) , and I am getting paid pretty hefty from my bank employer , we process, underwrite and close our own deals in less them 12 days . I have every program except for programs that will bring on another bubble . Put that in your pipe and smoke it ! I see the broker sheets you can not compete !
Well puppet, i guess you didn’t do your homework again. I can easily do 4.75%, make 1.5% (thats $3000 on $200,000) pay the lenders fees in total (leaving ZERO in my origination box) and still make more on that one loan then you can make while giving the customer a better deal. Or does your employer pay you over 100 basis points per deal. LOLOLOLOOLOLO. Doubt me??? Check Provident Funding wholesale rate sheet (the first and only rate sheet i checked, i’m sure other are close or maybe better). Their fees are about $800 leaving me $2200 and a happier customer. Put that in your crack pipe dummy.
Happy camper well you will be living in a camper in April! LOL I think you need to check your math , and by the way I get over 100bps per deal , insurance , I have my underwriter right there ans my processor, I can say you are pre approved and mean it , I can close in 12 days . What is your deal with Provident on APril 1 ! Now put that in your crack pot baby and be a happy camper you said it perfect a little 12 by 14 camper .
Hahaha! I like how you type like you’re drunk! Definitely makes your anti-broker rant seem WAY more legit. Idiot
Drunk well yes maybe after a nice paycheck from the bank! How is the camper ?
I worked at the old Downey Savings Bank as a wholesale rep 2000-2002 before opening MortgageBidz. Downey’s own retail customers could get a better or certainly equal deal from brokers. In fact their wholesale to retail business was about 4-1 due to their broker business. I got approved with them before resigning my position yet continued dealing with them as a broker. The problem today is lack of synergy between the bank and the broker. The line is now drawn in the sand. The banks could increase their originations through the broker channel yet charge the consumer higher rates directly to maximize their profits.
I see in the near future private funds entering the mortgage industry and beating the oversized fat bankers at every turn. And some of my allotted fundings within every portfolio will include a new sub prime twist.
Obviously this guy works at a bank because he can’t pass National and State level testing.
Just received this from NAMB and it directly relates to the guys excellent video today. Remove the spaces. When I post a link it always holds the comment and says “awaiting moderation” ????!!
www. youtube . com / watch? v = ZuPGrNK1Lh8&feature = email
Just received this update from NAMB related to the video today : http://www.youtube.com/watch?v=ZuPGrNK1Lh8&feature=email
I, for one, admit that far too often I have sat back and hoped someone else would take a stand against the injustices that are being perpetrated against our industry. But this issue is just too important. I have emailed some of the media outlets I could find addresses for. I suggest that everyone who is reading this do the same. Only a large number of emails on this topic will get anyone’s attention. Feel free to just copy or amend what I’ve done. We need a massive response from our industry. Here’s who I emailed:
stu@glennbeck.com; cbrady@glennbeck.com; hannity@foxnews.com; huckmail@foxnews.com; oreilly@foxnews.com; ontherecord@foxnews.com; kudlow@cnbc.com; dholland@kudlow.com; madmoney@cnbc.com;
Here’s my email:
I ask that you take a few minutes to watch this video that explains how the Fed has justified creating a rule relating to mortgage loan originator compensation under the guise of protecting consumers that will drive up costs to consumers, concentrate more money in the hands of the “too big to fail” banks, eliminate jobs, stifle housing growth, and restrict how a company can pay its sales staff. They have cited only four studies as the basis for their rule and then silenced the two opposing viewpoints by hiring all the authors of those studies. WE NEED YOUR HELP TO EXPOSE THE CORRUPTION WITHIN THE FED. Please watch… http://tbwsdailyshow.com/2011/03/22/the-lo-compensation-fed-rule-scandal/
you kick ass
Randy – When, on one hand, you preach about the need to band together to make a big noise and then you finish with a poke at the Democratic, liberal, do-gooders, your message gets lost. This is not another time to bash left-wing politicos. Don’t lose sight of the fact that this is greed – pure and simple and crossing party lines. Greed is what got us into this mess but the mistake was that regular joe’s were caught up in it when it had always been the playground of the rich and entitled. This systematic destruction of first the appraisal entrepreneurs and now the mortgage brokerage small business has been, sad to say, very well crafted. The only way we have left to fight is in the court system. Large, class-action lawsuits that will make it worthwhile for a good attorney who can make a lot of money with a win since we don’t have a unified organization that can afford to pay a lawyer.
Here are over 20 emails addresses for Fox News if that helps speed things up. Just cut and paste and send! http://www.foxnews.com/story/0,2933,77538,00.html
Great Job you “Mortgage Slueths” and thanks for always being there for the Mortgage Broker. Wow interesting stuff. The “idiocracy” never ceases to amaze me.
This needs to get to Fox News
You know what? Screw replying lol. Replies gets lost.
Randy, you’re suggesting playing their games with their cards, by their rules and with them having a limitless money supply backing them up. We can’t play by their rules – we have to make the rules.
For instance, if appraisers would come up with their own forms for the banks and GSE’s to use then we could claim copywrite our info on all those forms and if they tried to rip off the data we could sue. Whole industries have grown up around ripping off the appraisers data and that is what the new GSE requirement of using an XLMS format is for! As long as we play by their rules and policies on their level we aren’t going to win. We don’t have an unlimited money supply.
Public opinion is our strongest option and educating the public is our best bet. I’m not against any organization at all, but I don’t see how any immediate affects can be gained by pandering behind the scenes. By the time they get around to it, it’ll be too late.
I’m still all for public protest. Maybe once the people get angry enough and protests start, they won’t stop.
oops. Hit post comment instead of spelll check. Here is correct copy:
Fair is fair. What is good for the goose and all that, but I am a bit confused, please clarify.
The screen shot of the FEDERAL RESERVE SYSTEM Truth in Lending final rules on 12 CFR Part 226 Regulation Z; Docket No. R-1366 links to a 30 page document in which you boys later provide information about the 4 reports, which that screen shot actually comes from page 101 (not page 32 as you report) of the same title, but Docket No. R-1367.
I have yet to locate a document in which the Summary states: “The board is publishing final rules amending”…. (and ending with), …”protect consumers in the mortgage market from unfair or abusive lending practices.”
Please provide the direct link to this document and summary. This will help to validate your 6 minutes on the air today…Is it possible your research team got it wrong? I am for hire boys….
Fair is fair. What is good for the goose and all that, but I am a bit confused, please clarify.
The screen shot of the FEDERAL RESERVE SYSTEM Truth in Lending final rules on 12 CFR Part 226 Regulation Z; Docket No. R-1366 links to a 30 page document in which you boys later provide information about the 4 reports, which that screen shot actually comes from page 101 of the same title, but Docket No. R-1366. I have yet to any document in which the Summary states: “The board is publishing final rules amending”…. (and ending with), …”protect consumers in the mortgage market from unfair or abusive lending practices.”
Please provide the direct link to this document and summary. This will help to validate your 6 minutes on the air today…Is it possible your research team got it wrong? I am for hire boys….
Rich, Agreed! As any good accident investigator knows you have to keep asking Why? until you get to the root cause of any accident. In this case the root cause is The FED’s manipulation of mortgage rates that made possible everything that came after it. In 2004 Greenspan was asked if he was concerned about the housing bubble and he replied (paraphrasing) ‘The FED is not concerned with bubbles. The FED’s job is to control inflation and inflation is in check’. It’s unfortunate (and suspect)that the media has not done a better job of pointing this out. How was it possible for a bunch of little guys who are very loosely organized, Appraisers, Mortgage Brokers, Real Estate Agents, all together, everyone of them, across the entire Nation, decided one day to collude to create a housing bubble? There is only one common factor that every nook and cranny of every market in the US had in common, and that was exceedingly low rates for an exceedingly long time. Makes one wonder how the obvious escapes public attention.
We all should have known by now that this entire LO Comp rule was simply a ruse to concentrate more of the money with the big banks. The banks want order takers, not professional LOs so they can pay them peanuts and force everyone to just go to their local bank branch for a loan so they can cross sell them on every other financial product under the sun. Is anyone surprised that the “creditors” get an exemption in the Rule? Frank and Brian should be commended for looking deeper into the Fed’s justification for this rule. We knew their motivation, but not how truly sinister their methods were. I hope that the NAMB and NAIHP lawsuits have included this information in their case. I think this fact alone should show the court that the Fed had no basis in fact for making this rule and has overstepped its authority.
My fear is that even if the lawsuits work that the big banks will force the LO Comp rules down correspondent/wholesalers throats since their overlays control just about everything our wholesalers do anyway and this is what they want. Once the government successfully shrinks FHA’s market share and gets rid of Fannie and Freddie, the banks will be the just about the only place for wholesalers/correspondents to sell their loans to.
We need to flood the major news networks with this information and video. Congress can’t stop the Fed. Pressure needs to come from the people. We should learn a lesson from what the Egyptian people were able to do for themselves. Too many people in our populace do not realize what our government is trying to do with their incremental steps to take away our freedoms. We need to get involved, force term limits, and follow the money. Everything comes back to money.
Well,,, maybe now you’ll get off your duffs and join some advocacy group?
You appraisers out there that are hiding under the rock in the Geico commercial need of join the CCAP. Goto CaCAP.org If you don’t the same thing that is happening to these LO’s is going to happen to us.
The Key is State Regulation of how appraisers and LO’s work and what they get paid. State Laws trump fed rule anyday of the week. If you join a state based group and rally support you can get local politicians to listen to you, and draft legislation that is favorable to your cause.
You ain’t gonna get the FED to do anything in your best interest. The FED is made up of a panel of the top bank executives. Do you actually think you will get a fair shake. Dream ON !!!
There is naive then there is just plain stupid, you can educate naive, you can’t fix stupid!
Get your brains around this concept,,,, Influencing politicians is ALL about numbers. The more people you have behind you the more the politicos listen. If you have a group of 1000 people the politician sees 100,000 votes. You can actually have a significant effect with 100 people, but with 1000 people you can have a REAL SERIOUS effect.
WE need paying members to further our cause which is to make the Appraising business whole again, and take our future away from banks that would starve you to death jsut so they can have all the money.
These Banksters DO NOT have anyones interest in mind but their own.
One thing you CAN do on a national Level is DEMAND that your Senators and Reps purge their staffs of any bank lobbyist contact or involvement whatsoever. These guys are the ones sneaking last minute things into bills just before the vote. Things like “reasonable OR customary” instead of “reasonable AND customary” which was changed just before the Dodd-Frank bill was voted on, thus insuring the banks ability to continue treating us as the always have.
These bank lobbyists are so far up the A$$ of Congress it should be uncomfortable for them to walk. The only way we can compete on a national level is with really BIG member numbers, which we will probably never achieve.
But we can also do the same thing at the state level which will have an effect with much smaller numbers.
There have been 10 states so far that have enaacted anti-BPO laws, and we need this in CA too. I’m sorry if all you RE Agents and Brokers are offended out there, but you have no business appraising houses. I don’t sell houses, You should be able to make enough off selling houses that you don’t have to steal dwindling work from appraisers to make another $75! Plus since you don’t even know how to appraise a house you are shooting yourself in the foot by driving the very markets you service into the ground.
We will not let OREA be absorbed by the DRE! and appraisers need to unite just to stop that push. Since it’s all about stealing the OREA’s money anyway. I think you more liberal minded folks need to consider stopping your support for the people who are behind this. Yes this is a Democratic proposal! Made by people in the banking industry to some liberal Doo gooder who thinks it would be better to break the only people policing the banking industry for a few bucks, rather than take away the public union’s “Right” to colletively bargain with politicians.
Wake up and get off the Huffington Post. You might better learn how to solve a problem.
Randy
Randy, you’re suggesting playing their games with their cards, by their rules and with them having a limitless money supply backing them up. We can’t play by their rules – we have to make the rules.
For instance, if appraisers would come up with their own forms for the banks and GSE’s to use then we could claim copywrite our info on all those forms and if they tried to rip off the data we could sue. Whole industries have grown up around ripping off the appraisers data and that is what the new GSE requirement of using an XLMS format is for! As long as we play by their rules and policies on their level we aren’t going to win. We don’t have an unlimited money supply.
Public opinion is our strongest option and educating the public is our best bet. I’m not against any organization at all, but I don’t see how any immediate affects can be gained by pandering behind the scenes. By the time they get around to it, it’ll be too late.
I’m still all for public protest. Maybe once the people get angry enough and protests start, they won’t stop.
Randy – When, on one hand, you preach about the need to band together to make a big noise and then you finish with a poke at the Democratic, liberal, do-gooders, your message gets lost. This is not another time to bash left-wing politicos. Don’t lose sight of the fact that this is greed – pure and simple and crossing party lines. Greed is what got us into this mess but the mistake was that regular joe’s were caught up in it when it had always been the playground of the rich and entitled. This systematic destruction of first the appraisal entrepreneurs and now the mortgage brokerage small business has been, sad to say, very well crafted. The only way we have left to fight is in the court system. Large, class-action lawsuits that will make it worthwhile for a good attorney who can make a lot of money with a win since we don’t have a unified organization that can afford to pay a lawyer. I, as a liberal do-gooder, would be happy to work with a conservative if it means we all get to keep our business open and thriving.
People, we can make a difference if we ban together! Please each one of you who saw this today forward to the TV networks and your local congressman. By sheer numbers there will be more media coverage. And, if you do this once a day I know we will stir the pot enough to bring an awareness that takes on steam. DO SOMETIHNG!
The whole mortgage meltdown is suspect. First Greenspan goes around giving speaches to savings and loans and mortgage broker organizations recomending variables. The Banks loby congress for major changes in the BK laws making it much harder to liquidate debt. Then the Fed raises short term interest rates to their highest level in history when compared to inflation.
It may be that the Fed is just stupid or it was a plot to destroy our industry. It can only be one or the other. If it was not a plot, why did they need the sweeping changes in the BK laws at just the right time?
broward appraiser, we were with you all along. Do you think we like HVCC? Making statments like that will not accomplish anything. I worked hard against HVCC for everyones benefit, including yours, as many have and continue to do. We are stronger when we work together.
and when I say “makes sense” it means that it’s clear to me that there is going to be a very central approach to the Fed for the next few years as the perception seems to be that this is a means to a STABLE end. I am against this legislation in case my previous post was confusing on that aspect.
This makes sense from a Central point of view to “keep your enemies closer” in terms of detractors. What cannot change is the pain that so many of us suffered from family/friends/critics in general for the last 6 years. We are a conduit for community building, maintaining, and educating. It’s a life of conducting a symphony of parties to perform and protect both home buyers and banks while creating multiple partnerships with everyone and every profession involved.
LO’s welcome to the world of the appraiser. It is about time you joined us!
The new Bureau of consumer oversight will be housed in the same building as “The FED” and will derive it’s funding from “The FED” and is not subject to Congressional budgeting that could impact it’s funding – so it can never go away. Pretty good planning huh?(!)
Period, dot, bingo!!! Well done! The mortgage industry has two, powerful, giant, villains; the U.S. Government/liberal body politic and The Fed. The question is, what can be done? The only entity that I have seen, aggressively targeting both villains is the Tea Party movement. Time for many more to get ‘actively’ involved to strengthen the movement and nuetralize both entities. 2012 is coming soon and the importance of rallying the vote is critical to our free market, capitalist economy.
Below is an email I shot to my representatives. Please feel free to use it to send to yours – change it anyway you like, just send something! If we each offered to each other what we are sending to our representatives we could save each other time and more easily get the word out to the people who are supposed to be working for us! The Daily keeps getting better and better!
Dear Senator (name), Small business mortgage broker companies have been under attack and need your support. The majority of banking legislation has been aimed squarely at the mortgage broker. Being a mortgage broker I can say I consistently beat the banks in offering better, less expensive financing options to the citizens of (your state). Please become educated about the unfair conditions that current legislation is creating for these small businesses in (your state) and across the country in delivering lower cost options to consumers and creating competition that helps lower costs for all citizens, then support changes to preserve these. Below is a brief video overview of the questionable justification for just one piece of legislation negatively affecting mortgage brokers and consumers. The effects of this legislation will reduce consumer choices and prevents brokers from being competitive by eliminating their ability to lower their costs to win consumers business and make concessions to the consumer. Frighteningly, not only is the justification for this legislation questionable, it has not been studied to show it will help while the unintended consequences of it will hurt competition and consumers.
http://tbwsdailyshow.com/2011/03/22/the-lo-compensation-fed-rule-scandal/
Please contact me for additional information on how you can help the ailing National housing market and preserve competition that benefits Rhode Islanders and all the citizenry of the Unites States.
Sincerely,
Pingback: Untitled |
You know what’s purposely ironic imo, the Fed is issuing these rules under the guise of protecting the brokers, just like HVCC was for the appraisers protection calling it a “code of conduct”. A “protection” racket. From Wiki : A protection racket is an extortion scheme whereby a criminal group or individual coerces other less powerful entities to pay money, allegedly for protection services against external threats (usually violence or property damage). Many racketeers will coerce potential clients into buying protection through property damage or other harassment. In most cases, the racketeers do little to protect the client from other predators, and their “protection” is little more than extortion.
In times of war or crisis, power is easily stolen from the many by the few on a promise of security. The more elusive or imaginary the foe, the better for manufacturing consent.”
Government by organized mob.
HOOOOOOOLY CRAAAAAAPPP!!!!
If this information is verifiable, please, please, please take it nationaly and alert the media who they have been supporting.
its all real
ALl you have to do is watch The Inside Job to confirm the FED and Treasury are run by a bunch of criminals and folks covering for criminals. My husband said the same thing Brian did today while watching this award winning documentary – these guys are operating like the MOB!
How scary is it that this stuff goes on. Still business as usual no matter who we elect or what we do. I do have one question… who is going to enforce the “no fly zone” over us when we have had enough of this and actually decide to stand up for ourselves?
Funny I made the comment today that I feel the Libyan in me wanting to rise up against our government as well.
It started with the HVCC – it was illegal. That should have been everyones clue what was going on – that our government was being compromised by monied interests. It was unprecendented (in this country) that an illegal policy like that could be forced on private businesses and consumers without going through the APA and the RFA. That was the mob at work in 2007. Their work is now getting elevated to new heights with the complicity of the the US government, the US Treasury and the Federal Reserve.
Excellent video guys – it deserves national attention. As FDR said “We know now that Government by organized money is just as dangerous as Government by organized mob.”
Look what the Republican governors are doing (with the Koch’s). Stripping bargaining rights, trying to privatize local government control of prisons, colleges and liquor stores for Wall St brokers to make a killing – this is a slow insidious takeover of our country to where all will be indentured servants to the 2% elites. There will be no middle class anymore. Education is too expensive, schools are getting cut, teachers aren’t getting paid what they’re worth. This is a bankster plan that has been in the works for years. I’d post the Charles Lindberg’s find that he revealed to Congress in 1934 – “Bank Manifesto of 1892″ to see exactly how this plan is playing out, but you can google it to save space. Instead I’ll insert this by Bill Black that shows exactly what we’re up against : “the FBI has continued its “partnership” with the Mortgage Bankers Association (MBA). The MBA is the trade association of the “perps.” It created a ridiculous on its face definition of “mortgage fraud.” Under that definition the lenders — who led the mortgage frauds — are the victims. The FBI still parrots this long discredited “definition.” That is one of the primary reasons why — in complete contrast to prior financial crises — the Justice Department has not convicted a single senior officer of the large nonprime lenders who directed, committed, and profited enormously from the frauds.”
The Fed’s only goal, along with the Treasury and our government, is saving the banks because of the lie that the banks are never guilty of any crimes. Really. Everyone else is guilty and must pay the price. It’s backwards. The innocents are being punished and the guilty are allowed to make the rules and the rules benefit only them. Funny thing, the FHFA said they’d take comments before implementing the HVCC and despite overwhelming objections, it was implemented anyway. Kind of like when TARP was before Congress and calls were coming in at 90 to 1 to not bail the banks out – our representatives did anyway. Inverted totalitarianism where cost-effective means mob rule. Side note on US Empire building: Libya hasn’t bought a new plane in over 22 years and 3/4 of their air fleet isn’t capable of flight.
“We know now that Government by organized money is just as dangerous as Government by organized mob.”
We now have both.
Yep, that was the point Leo. FDR knew it and he put the banksters in jail and cleaned up the government. What happened then is sooooo like what’s going on now. Glass-Stegall, 17 pages and served this country well for over 70 years. Frank/Dodd bill, over 2,000 pages. Baffle em with bs that’ll take years to figure out while the takeover continues.
You’re nuts!
Coolective Bargaining is NOT a right, it’s a privlege, and anyone who thinks otherwise is dead wrong. Those so called republicans are the only hope we midlel class people have to fix all the wrongs of the Domon-cratic party that have been stealing our money for years. Yes, true, both parties have catered to the big banks, but the unionized democrats are like sheeple following the lead and whims of their union backed elected ‘crooks’. How can you be on the right side of this issue and so wrong on the grand picture?
Andy, to me bargaining rights ensure a safe workplace and humane treatment and living wages – unlike sending troops off to war without the right protective gear which has happened.
For one collective bargaining took kids out of the workplace and there’s many, many more things that collective bargaining has done to improve life for us all.
From wiki again : Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements which regulate working conditions. Collective agreements usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and rights to participate in workplace or company affairs.
This is very interesting reading for all.
http://www.libertyforlife.com/banking/federal_reserve_bank.html
I do not know about you guys. But I get sick to my stomach the more I find out how freaking CROOKED our government is. Everything I look into is such Bull S#$T that I cannot believe these people can sleep at night. Do they really think that when they cheat the public as an elected official and that is any different than when a criminal hides and cheats us? It is about time someone with a moral conscience holds some of these guys accountable. OBAMA???? Hope???? Change??? Yeah rite it will not come from the top down we know that.
Video played great. Forwarded it to CNN, Fox, Glenn Beck and my congressman begging them to watch it. Great job, guys!
Right Carie, If we could get everyone to do that it would help. Thanks a bunch.
All along, I have been repeating Independent Loan Officers / Brokers and Independent Appraisers are being dammed by Big Banks. What kills me here is this crap is actually coming as a surprise to some people. Wake the F____ Up People if we do not band together our profession is history! Come on, Yanky and Spanky here capture your attention everyday – trust in them to establish an organization that we can all join and buy ourselves legal representation. We require a strong voice or we are all screwed.
This is as I suspected all along. Mortgage brokers are being screwed, used as the scape-goat for the mortgage mess and driven from the business. They (the big banks & government) have no intention of “working with us”, they want us out. I have also worked with the NAMB, NAIHP, and my local CAMB, and to be honest these organizations seem to be worthless. I’ve never see them make any headway for us. We just get steam-rolled every single time. We must organize on our own, do a class-action on the grounds of “anti-competitive” legislation. Every rule they come up with is counter to what I know and have seen in this industry in the 25 years I have been in it. What are we, as an industry, going to do about this? Everyone is “mad as hell” but why are we still taking it?
Time for us as a group to email Glenn Beck, rather you love him or hate him this story is perfect for him.
stu@glennbeck.com; cbrady@glennbeck.com
One little email from me will get overlooked!
Forward this video on and maybe his staff might call it to his attention.
Thanks for the links I emailed both as well.
CORRECTION not repeal Glass-Steagall reinstate it
NAMB, NAIHP, Brian & Frank should take this information to the national airwaves. Fox News, anyone?
I Really do not understand how one attorney general in New York (ANDREW CUOMO) can dictate policy for entire nation HVCC , without congressional hearing, And of course our dictator (BEN) the messenger for a QUASI-Government entity or the 12 districts with PRIVATE dividend interest around 6% (FEDERAL RESERVE) , can dictate policy over small entities (BROKERS and LENDING INSTITUTIONS) it seems as if this is unconstitutional , If they really want to fix the mortgage problem repeal (GLASS-STEAGALL ACT) then Wall Street would stop building another house of cards and blaming guys who offered to the client what we were armed with when emailed a rate sheet, of course this rule will basically keep the SRP for the BIG 5 …..this is awesome A cinch.. while Fannie another QUASI makes loan level price adjustments at will for the borrower with stellar credit it is not about risk it is about less competition and gouging and GREED
Guys, guys !!!! Once again you perpetrate the misconception that the Federal Reserve is part of the Government. It is not. It answers to no one, and the congressional hearings? Nothing but a dog and pony show.
End the FED !!!
The Fed is a private corporation which exists only to put $ in the pockets of their member banks. No big surprise here. An ignorant and/or corrupt congress allows this ‘dog and pony show’ to continue. So much for congress (and the president) upholding their ‘oath’ to defend the constitution.
I know and agree, but if looks acts quacks and legislates like a government agency…. lets just call it that. I do, however, know exactly what you’re talking about.
Go get ‘em guys! Exposure, expsoure, exposure..this needs to be on national tv. The really sad part is that with less and less income…we will all have less funds to fight this thing.
Please get your self on Fox News, CNN, and NBC and shout this to the skies!!!!
These reports back up the claims that the Feds are writing the rules for the banks and brokers are being made a scapegoat. Check out the “Creature from Jekyll Island” on YouTube and learn why the Fed was set up in 1913 and what they really do. Anyways, the US Govt and Ben Bernanke will be exposed for all to see within the next 12 months once the financial system crashes all around them again and this time it will make 2008 look like a walk in the park. May your fucking balls shrivel up and die Bernanke!
great report. i love Jekyll Island
These reports just back up the undeniable claim that the Fed is just writing rules for the benefit of the banks and small brokers have been made a scapegoat. Go watch “The Creature from Jekyll Island” on YouTube and learn why the Fed was set up in 1913 and what they really do. The US Govt and Ben Bernanke will be exposed for all to see within the next 12 months once the system crashes all around them and this time it will make 2008 look like a walk in the park. May your fucking balls shrivel up and die Bernanke!
Well now all you LO’s know how appraisers feel! Cutting your pay will make you do a better job, right? I just can’t believe the government can control an entrepenuer’s compensation! Seems there is somebody we ought to be able to sue, but that isn’t happening!!!
Has anyone tried contacting Fox News? We need a larger platform than Facebook and email. They very well may take the baton and run with this story. Without public outcry, the Fed will continue to use their power to crush any industry they decide is not in their special interest.
Time for the No Spin Zone.
Good show today guys. I forwarded your video to my local congressman, Roscoe Bartlett. However, you didn’t even need to do any research to come to your conclusion. All you needed to do was look at who will benefit the most from new Reg Z. (Big Banks!) And who will be harmed the most (Borrowers and Brokers). There’s obviosly a conflict of interest. \Too Big to Fail\ banks are getting even bigger with the eventual, government mandated, extinction of Brokers.
I also forwarded to my congress folk.
Best video ever!!! I’ve been forwarding LO compensation videos to my congressman. I’ve met with him and he has talked with Republican members on the House Banking committee. I’ll be forwarding this and calling him again today!
In my opinion this is enough reason for Bernanke to step down!! This is incompetence and corruption at it’s worst!
Your right I do feel sick after watching this video! Great job, hopefully this helps NAMB and NAIHP win their case.
Thanks guys.
You guys usually do a great job, but, irresponsible reporting will not help our cause. Did anyone “Google” CRL and Herb Sandler ? Sandler does not ‘head’ CRL , he is one of many benefactors. CRL is on our side regarding QRM by urging regulators to avoid requiring high down payments of 20+%.
Pete,
You are addressing an entirely different topic i.e. 20% down versus the killing off of brokers. The are completely unrelated and the reference you make totally supports the fact that the same organization can, at the same time, support our wishes to avoid more down payment requirements AND to do away with brokers.
Correct?
Wow even if Herb Sandler is no longer the “Head” of CRL he founded the organization and has donated over $20M of his own hard earnd “pick A Pay” cash …this guy makes Angelo look good…check out this 60 minutes story on Sandler and his company…he and his no income verified option ARMs are responsible this Comp rule and the very organization that he founded is actually helping the Fed on this and fighting the NAIHP’s law suit
http://www.cbsnews.com/stories/2009/02/13/60minutes/main4801309_page2.shtml?tag=contentMain;contentBody
he’s the founder and main contributor.
Brokers are dead. This is a casual inside job to kill them off. It’s been in motion for 5 years according to the people I know. I am a banker. Honestly, I will have more pie when brokers are killed off, but I am smart enough to know that industry is like a healthy ecosystem and thus the more players in it the healthier the ecosystem will be.
Getting rid of my competition through these strange underhanded methods within the government is NOT the answer to our nation’s ills, any of them.
I can fight my competition and win just fine on my own.
Boo government.
Ok…Ok…Ok. I get it and always did. It’s the FRB and they are not going to stand down. The Reg. is going to happen wether we agree or not. For me, I am focusing on how to excel from this major change, not just survive.
I’ve said this many times…everyone needs to read the book ” The Creature From Jekyl Island”. The Why and the How is in that book, and the Answer is too. It is the elimination of the FRB !!!!! Until that is done, nothing is going to change.
YOU CAN’T CONTROL THE WIND, BUT YOU CAN ADJUST YOUR SAILS !!!!! Good luck to all !!!!
Great video
Flawless playback
Are the studeis sited available in pdf? If so, please be comfortable e-mailing. Thanks!
Good stuff guys. (Big fan of “viddler”…good choice). This move is nothing more than securing the Fed’s interest and channeling funds to the Big Banks. I have been a firm believer for a long time that the FED has way too much power and their relationship to Wall St and Main St and how things are manipulated is dangerous. The FED needs to be gradually done away with in my opinion. Thanks.
The gov’t robbed you guys. Looks for criminal phony charges against you to shut you up…Or maybe an offer to join Fed Res’s payroll. They are the greatest enemy on Earth. Destroy entire industries with illegal immigration, housing market with B Franks and C Dodd’s escapades, printing money to hide big banks payback of “bailout”, they want you business, home, light bulbs, toilets, car, you name it. The one world gov’t liberals are stealing our country and ALL gov’t is playing along.
Thanks for a great show! Painfully poignant but right on the mark. Let’s all do what we can to expose the shame and demand sensible governing.
BTW, show took a long time to load. Glad I waited.
Video didn’t lapse once, it was perfect. Your news was great. I could see and hear everything. It did take a long time to download though.
Brian and Frank,
Thank you for your very insightful investigative report. I am sending your information to all my business associates, Congressmen, Senator’s and others to shed the light and spread the truth. It is ashame that the greatest country in the world is being ran by crooks, thieves and liars. No doubt the FRB and FED have the \Big 4′s\ interests and money coming in and to protect.
The Mortgage Industry is being blamed and a scapegoat for/by the thieves in Washington and Wall Street. The recent greed of turning a buck on the \liar loans\ i.e NINA, SISA, NINJA, etc. made Wall Street and the investors BIG MONEY or these products would not have been available to the consumer Loan Officers in the first place. When the economy tanked, people started losing jobs and income which started the downward spiral. Folks generally will pay their debts if/when they have the money. Let’s be real, No one intentionally sets out to lose their home.
The FED has always took for themselves and the Big Banks and Wall Street Tycoons off the skin of the working class. We need to limit terms for elected officials to a two-term maximum. It is time to clean house and kick/set the \garbage\ out to the curb!
Great story guys. I will send this to my congressional and senate reps. Also, please return to the format you used prior. I can now only hear the TBWS show. No video.
try watching via mozzila, this was happening to me in IE
The dates on the studies are 2005 – 2008! So the Fed makes it’s decision on 3 year old studies/data? It’s like HVCC, S.A.F.E. and GFE reform never happened. Nice!
Lets get Barney Franks, Chris Dobbs and Elizabeth Warren on our side and create the “Broker’s Bank” which will lower rates and cost which is better for the consumer. And thats what they want, so lets give it to them. Becarefull what you want, because they might just get it!!!
Barney Frank and Chris Dodd on our side, are you crazy??They are never on the side of free market, they are international one world gov’t threats unparalleled in human history.
By creating the “Broker’s Bank” Barney Franks, Chris Dobbs and Elizabeth Warren will have to be on our side because it better for the consumer. And that’s what they want. All we are doing is adding a new “PLAYER” to the mix. With all the brokers feeding it, it won’t be long before it #1 in fundings. Since the gov’t won’t let the big boss fail, we might just have to take them out of business, Or at least take alway their big tens of millions dollars bonuses. There’s 50,000 LO left and if each one put up $100 bucks thats $5million and be responsible for $500 that’s $25 million now we are a small player, but enough to play to start playing he game. And watch out big boss because every one will start buying this stock. it might pass Google and Facebook in no time. Because it has one thing that most start up, dont which is customers “US”
I did a google search of Center for Responsible Lending after Marc Savitt sent this email over to me yesterday -Update: NAIHP was advised yesterday, the Center for Responsible Lending (CRL), intends to file a brief in the matter of NAIHP v. FRB, in favor of the Fed. More updates to follow. –
check out the first site on them that pops up
http://activistcash.com/organization_overview.cfm/o/489-center-for-responsible-lending
I especially like the overview….”The onset of the current finaincial crisis has raised seriuos questions about its credibility suggesting that CRL;s brand of “responsible lending” characterized by the ability of unqualified borrowers to take out loans many of them are unable to afford, is a misnomer. ” You think?
Now to hear that Paul Mondor & Company is actually basing our comp rule on a study done by Herb Sandler’s CRL, former CEO of World Savings, the architect of the subprime melt down that is credited with the invention of the option ARM, is just beyond belief.
retry
Do you guys feel that comp plans that allow a Mortgage Originatior to “Bank Points” they can’t be paid beacause of Dodd Frank are in compliance?
I am looking at several plans that allow that, but I have been told this is specificaly prohibted by Dodd Frank.
What say you?
Short answer: not in compliance.
If you want it from the “horse’s mouth,” you can get a replay of the webinar put on by the attorneys for the Fed here:
http://www.visualwebcaster.com/FederalReserveBankSF/77385/event.html
You can scroll ahead to about 37:35 for the point bank discussion. Point banks, in and of themselves, are considered compensation (@ 39:52). Listen to the whole thing if you want to really ruin your day.
Took 4ever for video to download and about 4 tries with nothing. What you had before clearly worked for me. Maybe tomorrow will be better.
Good show. Maybe someone will wake up and listen before the end of the month. If the rule sticks as it is, I’m retiring. One small business out of business.
This entire “fixing of the housing market and financial system” is just wagging the dog. This is a distraction. In order for the banks to not be held accountable for their products, underwriting standards, influences with rating agencies and deriviatives products, they simply point the finger elsewhere. This is so ridiculous.
When Toyota had a problem with one of their products, ie gas pedal issues-you didn’t see the sales people getting their pay cut as some sort of punishment/insurance it wouldn’t ever happen again, the companies who originated the product took action and demonstrated their social responsibilities. Even with the natural disasters, Japan seems to be a much more respectable country to live in.
I believe the Fed and it’s employees should be banned from outside contact other than a few members of the Cabinet and the President, period. They should not be involved in policy making, independently making decisions on funding to anyone or entity without the direct consent of Congress on EVERY decision. I say this since it looks overwhelmingly like the banks and their lobbyists, etc. are running the show around here.
I’ve never heard of the government limiting a persons or a companys’ profit margin in any other instance and this is a disturbing idea that could continue into other businesses as well. I can tell you that I can see with the changes, small business owners will be very reluctant to hire new employees and with a leash on how we profit, we will all be more reluctant to spend for services such as marketing, traveling to provide customer service, etc. and our economy will suffer further. It’s a power grab by the banks and the Fed is in on it.
I couldn’t agree with you more! Sure some sort of fine-tuning at the point of sale is fine by me. Higher standards, I mean above this whole licensing nonsense would be one. But the fact that they haven’t gone after the people whom actualy INVENTED these crap products and come up with a way to hold them off from entering the market in the futue is beyond comprehension.
Drst4scss-you took the words out of my mouth. Glenn Beck exposed this over a year ago. Come on folks get your head out of the sand.
If the Feds offer to put you on their payroll, please decline – for our sake.
If this doesn’t get you ticked off at the feds I don’t know what will. I love this video and how it points out specifics, something the feds can’t seem to do themselves. I forwarded this on to everyone and hope everyone else does as well so it spreads. Thanks again guys for the info and glad to see you up and running.
Thank you Drst4scss. You took the words out of my mouth. Glenn Beck exposed the Sandlers at least a year ago! Funny how some people are just now finding out about this. Please get your heads out of the sand!
He who has the money, makes the rules. So just create the “Broker’s Bank”. Stop selling to Wells, BOA, Citi, and Chase, and stop wasting your money on lobbying against the Fed rules. Put all your money together and create the Brokers Bank who gives the best rates and programs by far, so your in compliance with the rules. Make sure it can’t ever be a retail bank, strickly wholesale only and not a corresponding lender, and the majority of stock holders be brokers, similar to the Green Bay Packer in the NFL. Basically, either Put up or Shut up!!! Be their main competition period!!
Nelson, Sure! I’ll just dig a few billion out of my piggy bank. Great idea. I’m sure if eveyone did the same we could come up with a few trillion dollars to fund this bank of yours.
Eight days left ! It all boils down to this , they needed a way to control. They can control the banks now more then ever . I have walked both sides of the street broker and banker . If someone wanted to close down a broker they dont need the government just tell pricing to hit the rate sheet by 1.50 points and that will get rid of the broker , all they would have to say is in this market we see the broker as a higher risk model and have increased our prices to make the risk worth it . So when you all state hey they want to shut us down it is not the Wells the BOA or the Citi it is basically a plan for the FED to have more control. It kills them they can walk into any bank and have more power then a brokers basement or office . I say basement because in this market if you are doing like you all say and giving the best price you will have your overhead as low as you can to do this. But I have seen some nice broker offices so the profit must be there. By the FED throwing a wrench into the broker world they will shut it down and then they have control complete control I can tell you that since I am a banker and we all jump when you hear the FED this the FED that . Personally I would more concerned with the overall future market for housing we have 4 to 5 years of nothing ahead . If you have children that are 16 they will be in good shape to buy at the bottom since they will need to work two years over the age of 18 and also have 20 % down and good scores . Our tsunami has not hit yet and it will .
Great solution and it would work! Beat them with their own rules. In our trust of the government we have granted the Fed Reserve an unlimited license to steal and they are taking full advantage. Last year alone they made 28 billion on investments using our money. Did we see it? The fix must be done by we the folks or it’s just going to get worse.
Great show!! you couldn’t be more on point. This information is so eye opening, and i wish more and more could see it. i will spread this show to as many people that i know that can see it.
Great reporting and information! keep up the good work guys!
I think I’ll scribble sumpthin’ negative down about y’all and forward a copy to the FED; looks as if it’s a good way to get a ‘real job’.
Yes, Video again!
Fantastic show.
I you have not seen “Inside Job” by Charles Ferguson, rent or buy the DVD today! It demonstrates how corporate america, regulators, and the goverment are screwing consumers (us!). “It’s a Wall Street Government” says it all.
INSIDE JOB!
Brian & Frank,
Doesn’t the LO Compensation Rule and the Actions of the Fed smack of Antitrust violations especialy price fixing and other restraints of trade? Could you add this message to the Federal Reserve Board on your next show? \As a real estate broker, I’d like to be employed by the Federal Reserve Board because your LO Rule will make it nearly impossible to provide wanted and needed services to consumers at prices they can afford and are willing to pay.\
Oh MY GOODESS!!! Thank-you for bringing light to darkness!!!! We need to clean house in Washington! It is time to stand for Truth and not lies!
This is infuriating, and an enormous eye opener as to what happens in our government. If you haven’t watched Inside Job by Charles Ferguson, go to Amazon.com and order your copy today. Every American needs to watch this documentary, but imperative for the lending community to see how this debacle has transpired from the beginning. Make your voice heard in the poles and talk to everyone you can. This Wall Street government is not good for anyone but themselves.
When the Georgia Organization was fighting totally restrictive regulation, we found we were up against The Center for Responsible Lending (who had a major imput in Loan Officer Licensing/ The Safe Act). We did a vast amount of research & found that The Tides Foundation was a major benefactor to The Center for Responsible Lending. GEORGE SOROS is the funding mechanisiam for the two of these “Socialist Organization”. Gee, wonder how we let them get this far??? I’m beginning to feel like a consparicy theorist!!!
Just sent Dylan Ratigan this email “On April 1, 2011, the Federal Reserve is implementing a rule that will essentially kill off the independent mortgage broker. The rule will prohibit certain types of compensation and limit compensation to all mortgage loan originators in this country. This highly controversial rule has decimated the broker industry, even after the Advocacy, 31 House reps and 2 senators have written letters to Bernanke asking him to delay/stop the rule. Two lawsuits are now pending from two industry organizations that hopefully will stop this rule. The rule creates a complete unlevel playing field for the banks in loan origination, making it more costly for the consumer for decades to come. The rule is in conflict with other laws, and the Fed has been relectant to provide any guidance to clarifying their intent. The mortgage broker is again the scapegoat for the financial crisis. Blaming us on the crisis is like blaming the 18 ticket agents who sold tickets to the 18 hijackers of 9/11. It is wrong and studies have confirmed that although we had a hand in the crisis, what about the banks who dreamed up the programs, and fraudulently sold them to the world? Why hasn’t one bankster gone to jail? Today though, as part of the final countdown to the 4/1 rule deadline, more information is coming out on this scandal. Please watch this short 6 minute video and read the www. NAIHP.org website for further info. the video is http://tbwsdailyshow.com/2011/03/22/the-lo-compensation-fed-rule-scandal. Thank you for getting Dylan to stand up to these corrupt people.” Come on peeps-let’s get the word out to as many TV types as we can.
Brian & Frank: I think that you missed one very important point. This whole LO comp thing is based on preventing us from steering borrowers into sub-prime loans, right? When was the last time you originated a sub-prime loan? When was the last time that you even heard of an existing sub-prime lender? That’s the whole problem with the entire mortgage reform thing, it’s backwards looking. The “reformers” are trying to regulate or outlaw something that no longer exists. When are these guys going to get a wake up call and realize tht the changes that they are trying to make have already happened as a result of market forces and internal changes within the industry that they are trying to regulate? It’s like trying to regulate the buggy whip industry. What really bothers me is that that there is 0% consideration for the unintended consequences of these actions.
People keep using the words “unintended consequences”, but I believe that they know EXACTLY what they are doing — it’s just self-serving. If you look at it, ultimately this is going to strengthen the big banks. In what way is that unintended? Don’t underestimate these people, and don’t be fooled… all of this is contrived.
Great Job Why is this information not being shared with the pending lawsuits regarding L.O. Compensation. This clearly shows the biased and unethical tactics used by the Feds to implement change that should be outlawed. A Judge would have to rule that the information used in these reports are valid or not and has a responsibility to act upon those facts. There seems to be a bit of conflict of interest in the studies authors and the new fed rules needs to really be suspended until further information can be gathered and reviewed.
TC: This information came out as a result of the lawsuits.
The Fed claims this rule was proposed based on findings of unfair, deceptive and abusive practices. What they didn’t tell us was, it wasn’t brokers, but the Fed itself they were referring to.
A few months ago, NAIHP filed a complaint with the Fed’s Inspector General’s Office, concerning the comp rule. We’re adding this show to the complaint as evidence in support of that action, as well as a new complaint with the DOJ.
Final briefs are due in court this Friday, March 25th, with respect to the lawsuits against the Fed. NAIHP fully expects to prevail in stopping the comp rule from being implemented. Should the Fed appeal that decision, the next step would be discovery… depositions, production of documents, etc. Step 1, depose all authors of all studies.
Message to Paul Mondor and Nikki Pastor: It’s NOT profits that are \problematic,\ it’s the FED.
I’m papering the Hill in Washington with this show! Good job Frank and Brian!
This is why I am going to your site right now with a $100 contribution…
-1st the Video streaming is very good.
-2nd. The big banks are now rivaling the major oil companies as the most powerful owners of congress. As the mob says “when you get bought you stay bought”.
Federal Government = MOB
Don’t stop on this issue… The Banksters are counting on us going away quietly. NOT!
And yes, I do believe they are responsible for silencing you (via the break-in) rip them a new @$$.
There you have it The mob rules . Well what needs to be done is we all start a website where we can pitch in to get some lawyers to sue the goverment or the FED . If all the brokers put in 20 bucks how much would we hve we already gettig fee’s fee’s fee’s for new agencies insurance bonds education state fe’s national fee’s . You have to think who made the programs for the loan officers to sell they said here ‘s the liar loan you sell it it’s ok with a w’2 emplyee with a 550 fico score .
Now that LO’s are getting raked over the coals people might pay attention. The appraiser’s income got slashed 30-50% over 2 years ago and not a peep. Something does need to be said and DONE about it!
Feds Revamp Waitress Compensation Due to e coli Poisoning Regulators are proposing a change in how food servers in the United States are paid due to recent e coli poisoning at a local restaurant. E Coli (short for “Escherichia coli” ), can cause serious food poisoning in humans and the bacteria is responsible for occasional product recalls due to unsanitary conditions at Major Slaughterhouse ‘s around the country. Clearly the fault of the food server known as the “Waiter” or “Waitress”. Mr. Tommy Aikey awoke a few days ago with food poisoning after having a Steak meal served by Wendy Knowfalt, a food server at “Steak and Ail”. After Tommy Aikey reported the incident to local authorities, the legislators and regulators quickly got to work on a new bill that will prevent this type of food poisoning in the future. From the experts within the government, all indications show that clearly the waitress was at fault for the ordeal. Here is a breakdown of the new regulation and the three main components. * and waitresses will no longer be able to have their tips or other compensation based on the type of the meal they serve or based on the servers experience level, or service levels to the customer. For example: • A Waiter or Waitress may not be paid more for a steak dinner, than a Shrimp or chicken dinner. They must be paid the same regardless of whether the food comes out warm, or cold due to any delay where the food was prepared while the server was on break.• When customers order their meal, they must be presented with a minimum of 3 different menus from competing restaurants in the area.• The customer must wait 3 hours to order their meal after signing a disclosure showing what type of salad, starch and vegetable will be served with the meal. If the restaurant owner provides these “ancillary” items – he may not charge a higher margin on one item over the other.* to the waiter/waitress must be either paid by TIPS from the consumer, or by credit card – NOT by BOTH. i. Note that for these purposes, both the Restaurant itself AND the Wait staff are considered “Servers”, thus – if the Credit card option is used to pay the cashier (owner of the restaurant), then NO TIPS may be accepted by the waitress.* Provision and Safe Harbor. i. A “Server” may not “Steer” a consumer into a meal by a certain animal type if they will receive greater compensation from that meal, than in other meals which may have been offered the consumer… unless the offered meal is in the consumers best interest (Safe Harbor).* that it is unclear within the proposed law how far this legal definition goes, and the Feds are offering NO CLARIFICATION. If the same steak dinner is available 2 blocks away, is it in the best interest to send the client to the competing restaurant?* serving Steak over Salmon in the best interest of the consumer’s health. All questions that have severe penalties and will only be clarified during future inspections of the restaurant by the Food Inspector. Lastly, in another unrelated law that is being considered called QRM, or Qualified Reluctant Meals- certain Restaurant owners should be aware that they may have to eat 5% of the consumers meal prior to serving.
I posted this yesterday and cited the source. Always cite the source when you post information that isn’t yours. Jmac Lending is the source of that parable and it appeared in the 3/21 email to their broker database.
Will we ever have a government that is not corrupt and self serving. I continue to believe we can. Honest leaders are out there we just need to put more of them in office. Good job with the story guys, you are “on the money” with this one!!!
Hi guys – I agree with the comments – PLEASE contact the major news networks and get them to listen …. This is a great story. This is the kind of story they want to hear ( I hope…)
For all you appraisers out there, there is some hope. Yesterday Marc Savitt of NAIHP commented about HVCC. “HVCC was a plea agreement between Cuomo and the GSE’s. Cuomo caught Washington Mutual and eappraiseit red handed, including emails. Tens of thousands of letters were sent to FHFA during the comment period, of which they refuse to release. T…hey continue to say the letters contain information damaging to brokers, but won’t release them. Fraud has increased over 50% since HVCC was implemented. Appraisers all over the country have gone out business. Consumer costs have increased 2.8 billion a year. We are currently meeting with law firms and preparing a class action lawsuit. One of the defendants will be the Gov. of the great State of NY.” For $50, you can join NAIHP. Go to http://www.NAIHP.org and join today.
Frank & Brain,
I feel, you both need to get at least one showing on National TV to spread this information on how the Consumer, and the Brokers are getting railroaded by the Federal Reserve! We need a Nation presence to get the word out and to holt some of the decisions the Fed’s are implementing!! It would help everyone, if the public were more informed about how the Federal Reserve is handling things!!
Think about it!
Our Government Criminal, unethical and lacking in responsibility in representing “we the people”? Really? go figure! And Better yet the Fed is “supposed to be” (very key words) not part of the federal government.
I say contact the John Stossel’s, Kudlow’s, 60- minutes, 20/20′s, John Anderson’s, and Dateline’s of America. Contact the AP, WSJ, and a few other print outlets. We need to start getting the truth out now!
Dear KKS,
I believe, whole-heartedly, that the same people that own our federal reserve own our main stream media outlets. Their goal is to make us feel helpless in the face of a government representing anything, and everything, but the people who employ it.
Failed Banks: Don Bernanake, we come to you with respect…simply asking for a few problems to be taken care of.
Don B: You come to me, asking for this, on the day I am solving the worlds crisis? What is it you ask of me?
Failed Banks: Don B, you give us the gift of stealing appraisers fees, raising costs to the borrower, but, Don B your excellency, it is STILL not enough. Don B, we have boats, large houses and other crap we still want.
Don B: I understand this problem. I will take care of this for you. We will TALK to some people and the Loan Officers will be glad to comply
Failed Banks: Don B, we are grateful. Forever in your debt.
Don B: Yes….you and the rest of the country are forever in MY DEBT.
Did you expect fairness from our Federal Government? Mortgage Bankers are going to get boxed into working for a large bank and the put on a 60k salary. Why do you think I crossed the isle?
I think a 60k salary is highly optimistic.
I am thinking 60k is way optimistic! more like 30k is more along the lines of bank pay!
I have to say I am extremely impressed with your reporting on this topic, nice work. I hope each and every broker/loan officer who sees this will contact their local Senator and/or Congressman to demand an investigation into this blatant biased and disregard for responsible governing of our industry. I find it unbelievable that on most other days I see 70 comments, most of which are complaining about your video; yet today there are only three responses to one of the most exposing stories of the year. I would like to encourage those same people to put the power of the pen to better use and bring this story to the highest level. If NAMB is not personally bringing these facts to the hill today, I question their leadership. Thank you for such a great piece of journalism.
This is just incredible! This is one of the best programs that you have done! This is a great story for 60 minutes or 20/20 program! What do we have to do to expose these crooks and gain national attention?
second that.
Way to come out swinging. Now that is investigative journalism!
We, the middle class, is screwed. Most of the middle class is not seeing it. There has and continues to be a major shift in income from our (middle class) pocket’s to the rich and get richer at all costs individuals.
Cam’t see your video. When I click on the link from your email, it takes me to the website, but, there’s mo video.
Good Job and hopefully a great transition for you from muckrakers to activists. Contact Larry Kudlow at CNBC, Business Week and the wire services…you have a national story that will influence industry change. Don’t drop the ball!
This is soooo… tied to what Glenn Beck has been saying for the last two years!
How about the fact that we are forbidden from crediting any of the buyer with any of our money for closing costs.. Huh? I can’t give my client money to help for closing costs if I want to??
It seems to be no surprise to anyone I show this video to that the banks own the Fed. Yet, somehow, no one seems to realize at what dear price they all, individually, pay for this. National apathy, great quality for the U.S. and bred through the owner’s of our media/federal reserve.. one in the same.