A National Strike for Mortgage Bankers?

Yesterday I had a 20-minute conversation with a trade group official who vented about the regulatory pendulum damaging the mortgage industry and loan brokers in particular. Most of what he said (the good stuff) was off-the-record. But there is no doubt in the minds of most industry professionals that what the federal government is doing to lenders is overkill. They see their compliance and regulatory costs going through the roof -- and you can rest assured that they won’t be eating the extra overhead. It will be passed on to applicants and borrowers. As for originating loans that are ‘destined to fail’ just so they can earn a good living there is no one left in the industry who believes in such behavior. (So I’m told.) In other words, some mortgage pros feel (on certain days) that they’re at a breaking point and the only thing that prevents them from quitting is the lack of other good job opportunities. (Booming refis help too.) The demand would be this: stop the regulatory madness now! Then again, mortgage bankers and brokers (banks and nonbanks alike) could call a national strike on making any new loans for, say, 60 days and see what type of damage that does to the U.S. economy. Of course, only a crazy person would consider such a thing. But some mortgage folks are feeling, well, a bit crazy. Yes, we’re living in interesting times.