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California Mortgage Survivors Have More to Endure

AUG 10, 2012 10:25am ET
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Like all mortgage broker industry meetings right now, the California Association of Mortgage Professionals' annual convention is a gathering of the industry’s survivors, but the message at the opening session was there are still forces out there that could further cut the numbers.
CAMP president Fred Kreger cited a quote from an unknown author which said that survivors are not necessarily the strongest or fittest, but those who are “smart, nimble, resourceful, and yes, lucky to avoid the pitfalls of uncertainty.”
He next brought up the term when it comes to a pair of wholesalers—Franklin American and SunTrust—which recently implemented flat fee payments to mortgage brokers for their services. These firms acted in the wake of Wells Fargo’s settlement with the Department of Justice.
Kreger said he did not blame those firms for acting as they did, because they themselves are trying to survive in the current regulatory environment.
The theory behind the flat fee is that it would combat the disparate impact of compensation practices on protected classes of consumers.
But if the flat fee becomes the standard, who will be around to serve those consumers, Kreger asked.
The best way for mortgage brokers to fight the flat fee battle with the Consumer Financial Protection Bureau is to get the Realtors and car dealers involved, he suggested.

Comments (4)
After 25 years in this business I thought I had finally survived and could try to return my family to a somewhat normal life. It appears that normal as we once knew it will never happen again. Everybody talks about their being an "Attack" on America. That is a very broad statement and yet so true. Who truly is behind making each day harder and harder to cope with??? So this time next year you will get a mortgage from a $10.00 an hour paid big bank employee??? Yep.....
Posted by Jackie H | Friday, August 10 2012 at 2:04PM ET
"The CFPB, 700 commoditized temple monkeys pawing through the ruins of America in search of bribes. This new bicameral whorehouse on Capitol Hill works like a vending machine. You put coins in the slot, select your law, and the desired legislation slides out."

Sincerely

The mortgage industry
Posted by | Friday, August 10 2012 at 2:12PM ET
Best thing the indusrty can do is boycott any lender that implements flat fees. Other lenders that don't will reap the benefits of not doing so.
Posted by | Friday, August 10 2012 at 2:55PM ET
I agree with both Jackie Harmon and The Mortgage Industry. I will go further to say that the regulatory attitude of this administration, the Fed, the CFPB and Franking Dodd are the real life figments in the mind of Anthony in the "Nightmare On Elm Street," (Twilight Zone, the movie, 1983). Check it out, they all look alike. And, we are the unwitting residents, family and guests who get our faces removed, fed peanut butter sandwiches for dinner and scared out of our wits, avoiding Anthony any way possible ALMOST without hope. What we need now is hope AND CHANGE. Consumers are having enough of peanut butter for dinner and screeming uglies coming out of their TVs.
WebJack, the dragon net.
Posted by | Friday, August 10 2012 at 11:40PM ET
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