LOs, Industry Angry at Too Much Federal Regulation

At some point the White House might finally understand that the regulatory pendulum has swung much too far in the other direction. (By then Obama might be back home in Illinois raking leaves in Lincoln Park.) When the CFPB dropped its late night ‘LO compensation surprise’ last week the anger from loan officers and brokers palatable. The basic feeling from rank and file LOs and brokers boils down to this: the Obama Administration and most of its appointees don’t understand the residential finance business and are basically trying to hand it over to the megabanks. The “consumer protection” part of the CFPB is failing miserably because the White House doesn’t understand that the megabanks are hardly nice to consumers. Of course, Democrats (and this White House) may push to break up the big banks. In other words, there appears to be a disconnect in the understanding of how finance should work. Right now we have chaos.