LOs Conflicted Over GOP’s Desire to Kill HUD?

Based on the comments appearing on our blogs and message boards, loan officers and mortgage brokers are overwhelmingly Republican. They don’t like too much regulation and given what’s transpired because of Dodd-Frank (regarding loan officer compensation) they’re fighting an uphill battle concerning how much money they can earn. The idea of “flat fee” compensation on a mortgage transaction is a non-starter. (Can you imagine if the federal government pulled that stunt on realty compensation? The National Association of Realtors would burst more than a few blood vessels.) But political affiliations can be tricky in today’s mortgage business. Mortgage professionals deeply depend on the FHA program (HUD) for mortgage insurance, especially for first-time home buyers. (Note: several private MI firms like Radian and United Guaranty are gaining share from FHA so that’s a positive development.) Presidential hopeful Mitt Romney has raised the idea of killing HUD outright – along with many other GOP politicians. Of course, such a pledge might be an attempt to garner Tea Party support when in reality anyone with a brain in their head knows that killing a cabinet level agency is nearly impossible. It just ain’t gonna happen – whether the GOP wins in the fall or not.