If it weren't for those darn mortgage lenders and their ultra-tight underwriting standards, the housing market would be much improved, or so the National Association of Realtors keeps telling us every month when the new existing home sales figures come out. This month was no exception. (See the story on the National Mortgage News website.) Of course, as we all know, most residential loans are sold to or guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae, and they set the standards, so blame them, right? But some lenders are starting to wonder that maybe Realtors themselves are an impediment to robust home sales. After all, Realty companies make 5% to 6% on most sales. Why don't they significantly cut their commissions to move inventory? And as long as we're on the topic, can you imagine a loan broker or loan officer making a 5% commission in this era of the 'new normal'? There would be holy hell to pay. One last thing: who works harder on a deal: the Realtor or the LO? Debate that among yourselves...
