Loan Think

You Didn’t Build That Mortgage Company

Actually, you may’ve built your mortgage company – and the government was there to help you, heaping on regulations to make sure you didn’t take advantage of any customers or didn’t have any rogue investment bankers or warehouse lenders take advantage of you. (Actually, there have been rogue operators in those sectors and Uncle Sam didn’t do much to prevent the damage.) In a perfect world, one where everyone is honest and discloses everything, mortgage bankers wouldn’t need regulations. But as we all know, that world does not exist. As for ‘your’ mortgage company, you may want to sell it over the next year to cash out and retire. Or you may want to buy someone else’s because you have substantial backing and see a golden opportunity as Bank of America, Citigroup and other mortgage ‘fraidy cats’ head for the hills, foaming at the mouth from Basel III rules. Meanwhile, national elections are two months away and the question you want to ask is this: Are you better off now than four years ago? Actually, that’s a bad question because four years ago Fannie Mae and Freddie Mac were taken over and the world looked bleak. How about this question: Who’s better for the economy going forward: Obama or Romney?

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