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tracedef
388 Posts |
 Posted - 11/02/2007 : 2:36:20 PM
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If You Want To Insure You Will Still Have A Career, A Petition Is Not Enough!
Call and Write Your Congressmen AND Sign The Petition!
The amount of change made to HR 3915 is directly porportionate to the public pressure received by Congress!
HR 3915 Information and Resources
This goal of this thread is to create a place where information on WHAT ACTION YOU CAN TAKE can be gathered. This bill is serious business and signing a petition is not enough considering the severe conequences such legislation could have on Mortgage Brokers and Consumers.
Do you have Congressional Contact Information? Post it!
Do you have other information on creative and effective ways to let your voice be heard? Post it!
RESOURCES:
HR 3915 News, Resources, and Information: http://www.ipagio.com/hr-3915-mortgage-reform-act.php
NAMB Teleconference Information: http://www.ipagio.com/hr-3915-namb-teleconference.html
HR 3915 Summary: http://www.ipagio.com/hr-3915-mortgage-reform-act-summary.html
HR 3915 Full Bill Text: http://www.ipagio.com/hr-3915-mortgage-reform-act-full-text.html
This is bad legislation that can have serious repercussions for mortgage brokers and more importantly consumers, do not think this can't affect you.
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azbroker
2613 Posts |
Posted - 11/02/2007 : 3:29:35 PM
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| You can locate your congressman by zip code at www.house.gov |
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isitfree
1301 Posts |
Posted - 11/02/2007 : 5:50:46 PM
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Hey Trace,
Thanks for your comment on my post on Lenderama
http://blog.mariah.com/2007/11/hr-bill-3915no-more-ysp/
I'll bump your post here!
Paul |
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Boulderco
1782 Posts |
Posted - 11/02/2007 : 9:54:47 PM
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| This is so true. This is not the time to sit on our asses and assume someone will take care of this for us. We are most certainly in a fight for our livelihoods. Unless you're ready for a career change and all that goes with it, you better act. |
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AK__47
1661 Posts |
Posted - 11/02/2007 : 10:53:41 PM
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| My office used to be located across the hall from our congressman (Peter J. Visclosky). I will be contacting him on Monday to give him our opinion on the bill. We became friends with several people in his office and spoke with him several times. I believe he will have an open ear to our concerns. Everybody needs to contact their local congressman. DO NOT SIT BACK AND HOPE THAT OTHER PEOPLE WILL TAKE CARE OF IT FOR YOU!!! |
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tracedef
388 Posts |
Posted - 11/03/2007 : 7:10:55 PM
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Barney Frank Contact Information:
This information and more is also at: www.ipagio.com/hr-3915-mortgage-reform-act.php
EMAIL Him Here: http://www.house.gov/writerep/
Call or Write him Here (I'm posting all adresses, but guessing a coordinated effort focused on the DC Office is best:
DC Office:
2252 Rayburn House Office Building
Washington, DC 20515-2104
Phone: 202-225-5931
Fax: 202-225-0182
Web Email
Website
District Office- New Bedford:
558 Pleasant Street
Room 309
New Bedford, MA 02740
Phone: 508-999-6462
Fax: 508-999-6468
District Office- Newton:
29 Crafts Street
Newton, MA 02458
Phone: 617-332-3920
Fax: 617-332-2822
District Office- Taunton:
The Jones Building
29 Broadway, Suite 310
Taunton, MA 02780
Phone: 508-822-4796
Fax: 508-822-8186
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Eager2Learn
14 Posts |
Posted - 11/06/2007 : 10:07:40 PM
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DO you guys completely understand the Bill, is it entirely banning the option of charging a YSP or is it just limiting the amount that can be charged...
Unfortunately I have not had the time to completely read and analyze the bill... But I will as soon as i get the opportunity...
However, the fact of the matter is that it needs to be limited, most of the reason for these horrible market conditions is because of things we have done to ourselves... the greed that has consumed the majority of mortgage professionals, who, in today's market are under-educated, glorified salesman... The boom overpopulated the industry with these people who hop around from job to job trying to make money anywhere they can, with no realization or concern for actual industry stability...
Brokers say they want to keep the option of charging a YSP, well stop abusing it... Lets take a step back and analyze how we got oursleves in this whole...
Agents abuse the ability to charge a YSP because they are not skilled enough to sell themselves as an actual professional, and charge the money they deserve up front... THey either can't convey the client benefits, are charging too much, putting the client in a program that does not really help their future financial position, or are just greedy and want to charge as much as possible... I learned really quick in this industry that their are two type of agents, the ones who rip off their clients and as a result are always in need of new ones because they et no referrals, or the ones who find a medium in between their personal financial needs and their clients, and charge just enough where they are happy and their clients are still benefiting... Those are the ones who get referrals and will make it through these tough times because they built customer loyalty and create a trsuting relationship... I mean it sounds all like book work , BUT ITS ACTUALLY THE TRUTH...
Going back to how we got in this market... It's simple, the agents max out the YSP using it as a way to hide their true earnings, whcih directy effects the interest rate the client recieves... It shoots it through the roof... then the payment goes right along with it, and before you know it, that Stated/Stated loan that you were doing, where you kind of inflated the income and the assets to get the borrower approved, knowing that they would probably barely be able to afford the payments, and were just happy to get approved for a loan after shopping around everywere else, has now been put in a situation where they are really not going to be able to afford the payment because their actual DTI is way too high... Then they default on their payments, and guess what... we get an epidemic... then we get record numbers of people defaulting on their loans, and finally, we get in this market that we have today...
To hear more on waht i have to say and otehrs like me, take a look at
www.brokerysp.blogspot.com
The good thing is that this will weed out the losers that can't sell and are confused about the purpose of a broker, to negotiate a better than retail deal that benefits the client... And with the DRE making it harder to get a salesperson license, the future of industry doesn't look so grim....
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assassin17
8287 Posts |
Posted - 11/06/2007 : 10:18:27 PM
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quote:
Originally posted by Eager2Learn
DO you guys completely understand the Bill, is it entirely banning the option of charging a YSP or is it just limiting the amount that can be charged...
It was changed. YSP cannot be charged or paid on anything but a Prime loan. However, all lenders can pay you a performance bonus for the amount of loans you bring to them. Say goodbye to the Subprime rate sheet! |
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tracedef
388 Posts |
Posted - 11/06/2007 : 10:25:53 PM
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Remember when the big pitch from Prime Rate Reps was: "There will alway be Americans with tons of credit card debt. In fact, Americans are acquiring credit card debt at record levels..."quote statistics here"... so there will always be a need for homeowners to refinance to consolidate that debt and that is why when rates go up A-Paper will be dead, but subprime will be on fire....
There was some logic to the argument, but how times change.... |
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Mastermynd
8 Posts |
Posted - 11/20/2007 : 11:37:27 AM
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An excellent point that I have taken action on... and you can to. Below is a form letter you can cut and paste to send to your congressman. Look up who your congressman is at www.office.gov, make corrections or alterations and send it off. This is too important to ignore.
Dear Darrell Issa,(YOUR CONGRESSMAN HERE)
I am writing you, a registered and active voter, in response to HR 3615 and the absolution of YSP for licensed brokers. To put it simply this bill is a mistake, and in my professional opinion does not address the real problem in the lending industry – namely unethical people in the industry taking advantage of consumers.
Let me expand on this point. With a simple CFL license, and a single tradeline, I would be, what is known as a correspondent lender, and able to make YSP according to this bill because banks and correspondent lenders are not obligated to disclose rebate or YSP, while brokers under current law are required to do so. This means I would be able to hire an unlicensed sales force, with absolutely no training or back ground in real estate, to sell mortgages to the consumer with a YSP - unknown to the consumer, while licensed brokers who are state certified could not, even though they are disclosing the YSP on their good faith estimate from the start. Is this really helping to stop predatory lending?
This bill is restricting the wrong people. Licensed brokers already disclose YSP, the bill should require everyone, meaning all lending institutions to disclose YSP, banks, correspondent lenders, savings and loans, etc… In doing so the borrower would have an accurate estimate of the total cost of a loan and be able to make an educated and informative decision.
To digress, I am sure the goal of Congress is to stop predatory lending, to protect the consumer from being taken advantage of, an honorable goal that I support in full. YSP is made when the borrower is “sold” or agrees to a higher rate to reduce closing costs, otherwise known as a no cost loan. YSP essentially means the borrower agrees to a higher interest rate. By restricting brokers from YSP but not banks, you have not addressed the real problem. Since banks do not have to disclose, the client doesn’t know his/her total cost of the loan (APR and the TIL only scratch the surface and do not produce a significant counter argument because if you ask 10 people on the street what “APR is?” eight will tell you it is something that it is not, because the consumer doesn’t understand the difference between rate and APR) and can still be sold into a product that they could have gotten at a substantial discount had the bank been required to disclose the YSP it is making.
Now let’s put 100 kids straight out of high school in a call center that has a CFL license and a correspondent tradeline. With this new bill they can still make YSP without disclosing to the borrower, and with no training in ethics or real estate, I think it would be safe to assume, just like in the dictionary, “I” would come before “You,” and this new bill just encouraged predatory lending by forcing broker’s out of the “no cost loan” market so these people have no true competitors other than themselves –with this formula you are asking the consumer to take a pleasant swim off Seal Island during shark season.
I am a licensed broker, with no disciplinary action against me, my associates are also licensed with no disciplinary action, we disclose everything according to current law. We worked to get licensed so we could better serve our clients. This bill will force people like myself out of this industry and encourage more CFL licenses and more correspondent lenders essentially trading ethical licensed real estate agents for unlicensed loan officers, that I am sure have never even heard the word fiduciary.
If you support this bill you have directly attacked my livelihood and the livelihood of my colleagues while encouraging an unstable market and contributing to our potential recession. If |
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