George Bailey

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    • Thu Nov 6th 08:50 AM | Rating: 0 0
      Commented on:
      Citigroup Is Heading into the Single Digits
      i get pissed off by "analysts" like this nattering nabob of negativism who issue these self fulfilling prophecies.
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    • Thu Jan 17th 11:54 AM | Rating: 0 0
      Commented on:
      Mortgage Brokers, RIP
      I worked for several mortgage brokers and bankers during the 1993-97. Mortgage brokers were no different than real estate agents or insurance agents. Some did what was best for the client, some did what was best for their YSP ( ie commission). Yes, there were scumbags. Yes, I worked with several loan officers who sold the payment (ignoring fees) to less sophisticated borrowers. Frankly, a mortgage broker could make more selling a subprime loan to The Associates/Ford Motor Credit than a conventional loan to Countrywide. Did I steer people away from conventional to subprime? NO! Did my associates? YES. What bothered me at the time was that The Associates/Ford Motor Credit would give anyone a mortgage - they priced for risk. As long as the borrower had a pulse, The Associates/Ford Motor Credit would give them a mortgage. I finally left the business due to my conscience and catholic upbringing. Damn those nuns!

      Now...flash forward to 2001. I am working for Citibank. There's a big announcement that we're buying The Associates. Holy crap! I did a spit-take of coffee through my nose. I could not believe that we would buy such a bottom-fishing credit organization. To Citi's credit, we cleaned up the shop - terminating 1,000s of brokers.
      I moved over to counter-party mgmt - we approved and monitored the brokers and bankers selling Citi 1st & 2nd mortgages. What opened my eyes even further was inconsistency between state licensing requirements for brokers. Some required just a fee, others required a minimum net worth. There needs to be more uniformity to licensing brokers.

      Now, do I think brokers are necessary? YES. As a mortgage broker, I pushed harder to get GOOD loans approved. I was more of an advocate for my borrower/client than the in-house loan officers. Brokers work harder for their clients. Sure, they're motivated by YSP and the origination point. But, they are also motivated by being on straight commission. No loans close, I can't make my own mortgage payment next month! Remember Gordon Gekko from the movie "Wall Street" and his famous quote, "Greed is good". Listen to the entire scene. Enhancing one's personal at the expense of another's is no good. Making it win-win is a good thing. My client got to refi down to a better rate or got cash out to pay for college - I got a reasonable commission.
      Thanks. Good luck.
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