Mortgage Guy

Is Countrywide Financial the Next Enron?

Too simplistic, pandering and shows a lack of understanding of the mortgage origination business. Countrywide is no worse than any other lender over the past 5 years, just bigger. I am sure if they denied homeowners access to credit we would have another group complaining that Countrywide is discriminatory. They are in business to make money and they play by the rules of the game. If they are not making money, judge them on that.

Paulson Gets it Right on Housing

Mortgage brokers are unfairly singled out in a lot of the media chatter. There is a distinction in the mortgage industry between a mortgage banker and mortgage broker. When speaking about mortgage brokers, is this writer using the term to describe all mortgage bankers and mortgage brokers, or just mortgage brokers? If it is mortgage brokers only, then it is unfair and misleading.
Mortgage brokers have to disclose far more than a mortgage banker, including the grosss profit they make on a loan. We are also far more likely to be required to take continuing education courses. Mortgage brokers are also subjected to more audits and background checks than a mortgage banker. Any discussion of the ills of the mortgage industry must include mortgage bankers and mortgage brokers equally.
Its not enough to rail against all of the paperwork a borrower is required to sign. The reason there is so many disclosures to sign is that every time there is a concern about an issue in the mortgage industry, the solution seems to be to add another disclosure.
Borrowers also need to take more accountability in this as well. The way the problem is portrayed is that massive fraud has been perpretrated against a whole class of hapless citizens. The truth may not play so well in the media, but we need to make borrowers accountable for their own decisions.