Regulated out of Business?

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As many of you know, there is pending legislation that would regulate (read: reduce or eliminate) the compensation of mortgage originators. The Fed has not realized that many of the worst players are no longer in the business and no lenders are offering any of the worst mortgage products. Imagine telling a Realtor that he or she would be limited to a certain $ amount of commission on a sale, regardless of the price of the home? Anyone in a sales position should find this scary, whether you sell automobiles, copiers, or anything. Does any thinking person really think that these things benefit the consumer, or that they actually HARM the consumer by eliminating some of the most talented people in the industry and FORCING consumers to one or two large (government aided) banks.

If this passes (and watch the clip below if you think this is harmless rhetoric), your choices for mortgage financing will be the choice between Wells Fargo and BofA. Good luck finding someone with a lot of experience or expertise, good luck finding someone to assist you during the evening or on a weekend. Watch the clip. Imagine if this affected YOUR industry and YOUR livelihood?

To end the week, this YouTube clip is making the rounds among the non-depository mortgage banks out there. If you have sound on your computer, check it out. If not, and maybe he was misunderstood, but it seems Barney Frank wants to completely shut down any non-bank financial institutions. Wake me up when this is over!  Thanks to Greg Brooks for this post.

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