'Politically Correct Is Not Profitable': Comments of the Month
February 16, 2016 1:24 PM
National Mortgage News readers share their views on the most pressing mortgage and housing topics of the month. Comments are excerpted from reader response sections of NationalMortgageNews.com articles and our social media platforms.
On mortgage companies camouflaging compensation plans as other expenses:
"It's like putting lipstick on a pig, a pig is a pig and paying loan originators based on loan terms is illegal." Related Story: How Loan Officer Compensation Spills the Beans on Company Culture
Describing golden opportunity for mortgage loan officers in the death of marketing services agreements:
"This is a great time for MLOs to really take stock of their personal brands and how they want to be perceived and how they can develop that perception for themselves in order to earn the business and make people want to do business with them." Related Story: Time to Earn Those Mortgage Referrals
On the possibility that 20% to 25% of independent mortgage companies could be sold or closed in the next 12 to 18 months:
"The unfortunate reality is that great mortgage professionals, who served their communities and industry honorably while providing great value, will and have been forced out of the mortgage industry." Related Story: Mortgage Banks Bracing for Consolidation
On the National Fair Housing Alliance escalating complaints directly to HUD:
"Where does NFHA get off not telling the banks about specific problems? Do they not want to fix the problem or was it all just a money grab?" Related Story: HUD Rejects Claims that U.S. Bank Neglected REO in Minority Areas
Arguing that independent mortgage loan officers won't necessarily have to join big banks despite the rising costs of doing business:
"When the big bank 'powers that be' required independent brokers to pass a laundry list of requirements to be able to still be an independent broker
[t]hose brokers who passed the 'test' emerged as licensed mortgage professionals, something a bank LO cannot claim." Related story: How Dodd-Frank Is Helping Large Lenders
Suggesting a reason why Bank of America's fourth-quarter earnings were down:
"Maybe if B of A did not close all of those gun shop accounts and credit card services, they would not have had a loss [sic]
being politically correct is not profitable." Related Story: B of A Mortgage Income Drops 26% in Fourth Quarter
On the technology revolution coming to the mortgage industry:
"Tech's job is to disrupt convention and fix inefficiencies. If a banker or broker can be replace[d] by technology even 20% of the time that will be a massive savings to both owners of the bank and the consumer. If FinTech's bet is right and people end up gravitating toward self-service mortgage lending versus their local banker, it will certainly mean more mortgage brokers and bankers will either need to adapt or find a new career (or a second job)." Related Story: Consumer-Direct Mortgage Lending Is Dead
And why it won't work:
"I'm aware that Uber bypassed the government and bogarted the taxicab industry. But the government's flexibility on $5 cab rides is vastly different than $500,000 mortgage loans that they buy and/or insure." Related Story: Consumer-Direct Mortgage Lending Is Dead
