If obese doctors (or doctors with health and lifestyle issues) can give medical advice, why should mortgage professionals be held to a different standard?
Suppose the loan officer was in a car accident, had old zombie debt, was forced into bankruptcy because they lost their job, was a single parent whose spouse left them, or had some other reason for having a low credit score? Perhaps the loan officer has zero debt or credit (which is also financially sound) and only has a couple of medical collections?
Please tell me what is responsible about leveraging debt and buying stuff on credit? I was raised not to buy stuff you don't have money in your account or cash in your pocket to pay. The only thing I recall that my father ever financed was a house. He NEVER bought a new car. Period. But he paid what he owed like clockwork, and he paid what he owed first.
I think its absolutely idiotic that people bow to credit scores which ultimately reward irresponsible behavior. When I look at a credit report for borrowers with a combined income of $50-70k a year, and they have thousands of dollars in debt, I personally think they are macaroons. The only thing more stupid than having thousands of dollars in debt is being rewarded with a high credit score for managing to pyramid debt effectively.
What is to say that a person with a 700 credit score is more ethical or has better management skills than someone with a 600 credit score that owes nothing? I've always said I favored borrowers with weak credit and a positive net worth over borrowers with high scores that are over-leveraged and have a negative net worth.
I've seen too many borrowers with high credit scores crash and burn (as predicted), and low score borrowers rebuild credit. Credit is a snap shot of a moment in time, and I am specifically trained to look at the big picture and consider extenuating circumstances.
Our credit system is a fraud. Judge a professional on their credentials and professional history and do a back ground check. That is sufficient for licensing. Companies can do their own credit checks.
As someone who doesn't (since 2006) bow down to the FICO Alter, I am so behind you and agree with you about this issue. Until we stop awarding 21 year olds with 750+ fico scores and pounding the 50+ with below 600 fico's because their Cable bill sent them to collection we are not going to fix the problem.
I'm asking my stockbrokers for their last year 1040s. If they made less money than me, should I hire them on the basis of the great advise he/she is trying to sell me on how to make money?
How about Real Estate Brokers? Not enough room here.
Again, remember that most people in our industry got burned financially due to the biggest recession since the last great depression. Officials told us that the world was coming to an end unless we allowed them to write laws for Tarp, ETC..
AIG, BoA, Citi, Goldman and so many others have broken so many laws lately... I would not be too worried about Licensing Agencies coming hard on anyone with an isolated major credit problem during the past 12 months.
D Trump somehow keeps being able to Trumple the system and open new Casinos and build more phantom buildings nationwide.
What I find amazing is...is that the government NOW is deciding to do all this "neat" stuff with licensing, etc...where in the h**l were they 10 years ago? 20 years ago...amazing! now that we have gone thru the greatest economic downturn and crisis since the Great Depression, NOW they want fiscally and financially responsible people writing loans....Sorry Mr. Government, but the frickin horse left the barn a LONG TIME ago......thanks ..you showed up to the party at 3AM and it started at noon...
I know of a lot of harding honest guys who have just been taken down with the tsunami at No fault of their own, have struggled to make things work and still at the end of the day, are honest and straightforward with their clients...
Oh and BTW, doesn't anybody beside me, find it awfully ironic and STUPID, that the govt who is about $18 trillion in debt, and who can't find their head from their a--, telling us mortgage people "that we have to be financially responsible' to write loans... give me a break! it is a big joke!
It has been said that in the land of the blind, the one-eyed man is king. Similarly, in the land of no sense (D.C.), nonsense (bureaucracy) is king. Doing nothing is always better than doing the wrong thing. But the nature of bureaucracy compels bureaucrats to do "something", often "anything".
After having read one of the worst news regarding the "Shared-Loss" agreement with the FDIC, and how investors net tens of thousands of dollars foreclosing on the same people that were already robbed multiple times by the system and government, the whole American Ethical Standards and American Way has become a joke and a big lie.
In between this, the laundering of loans by Citi and BoA and others and the rest, it is pathetic to see how they put us through the hoops they do to be licensed in order to compete with these Banksters. And some people here were telling me how bad and fraudulent mortgage brokers were. UNBELIEVABLE! REALLY!
I am in North Carolina and I do believe that NC is attempting to rid itself of any mortgage originators that do not work for an FDIC bank or backed affiliate or a credit union. This has been my thought for several years.
I was told by a worker at the Commissioner of Banks that a sub 600 credit score would cause your license to be suspended by the state. A BK will put you out of the business for either two or three years. I have requested this info in writing by have yet to see it.
Example of NC's laws is the 5% rule which is the total "cost" that can be charged on a mortgage. This includes upfront fees on government loans, YSP, all fees to the broker and/or lender, and many of the third party fees. $180k VA loan with no YSP, a 3% upfront VA fee, .25% discount to get the rate low enough to DTI, $795 in lender fees, and the broker total fees were approximately .80%. The credit costs over a four month period was nearly $200 but could not be charged. That was the day we began the journey from broker status to a lender umbrella.
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the system and open new Casinos and build more phantom buildings nationwide.
