Mortgage Brokers and Todays Regulations, What does it mean?

Intended Consequences is what most NAMB members would claim! The FED needed someone to pay for the market meltdown and Mortgage Brokers were the target. The past meltdown in the market happened on the FED's watch and they did nothing to stop any of it. The NAMB made repeated efforts over the past 2 decades to get someone's attention about the lack of enforcement of the rules and regulations to no avail. As we can clearly see now the NAMB was clearly ignored despite having nearly 38,000 members with control of well over 50% of the market. The result now is consumer oriented groups, regulators and members of congress work harder to try and pass even more regulations for the industry.

The Mortgage Broker industry has been blamed unfairly for the entire mortgage meltdown resulting in us becoming very small in numbers and gave us fewer resources. In another words, we were a very "soft" target. Why do you reference "Unintended Consquences"? Because this industry has consistently tried to shed light on how regulatory efforts have always significantly hurt the consumer.These regulations can be summed up to say " there is a significant segment of consumers who are incapable of making their own financial decisions." The regulators believe there job is to protect this populace by not allowing them access to credit. The unintended consequence is clear the FED has lumped the entire Mortgage Broker industry with the bad subprome brokers, who burned and pillaged everyone they could, with those of su who do and have always done business the right way. The mortgage meltdown has given the fed a tremendous opportunity to accomplish there goal of pushing brokers out of the business.

So will the Mortgage Brokers survive. Yes! The level of greed and arrogance displayed by the FED will indeed lead to higher cost from lenders to consumers, as monopolies inevitably do. This will provide Brokers an opportunity to capture business with wholesale models of smaller lenders with significantly lower cost to the borrower. The NAMB is still strongly fighting these regulations and have survived regulation changed and targeting for over 20 years. In the end the Mortgage Broker will offer the most access to consumer choice and credit and continue to be profitable and stay in business. So the question is... is this the intentions of the fed? Are consumers knowledgeable enough to have a variety of credit opportunities and choose the best? Or will we be forced to move to a market with 1 product? Opinions and speculations may vary however, the resiliency of the Mortgage Brokers whom are still in business honorably serving consumers will reap the reward in the long run and help borrowers along they way.