{"id":11629,"date":"2010-03-23T13:55:54","date_gmt":"2010-03-23T20:55:54","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=11629"},"modified":"2010-03-23T13:55:54","modified_gmt":"2010-03-23T20:55:54","slug":"originator-compensation-overhaul-to-cost-consumers","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11629\/originator-compensation-overhaul-to-cost-consumers\/","title":{"rendered":"Originator Compensation Overhaul to Cost Consumers"},"content":{"rendered":"

I said\u00a0new legislation would\u00a0benefit mortgage brokers to the detriment of direct lenders<\/a>.\u00a0 In the comments, I feared something insidious might happen (responding to Wayne Long):<\/p>\n

WAYNE: \u201cIt is interesting that the new rules benefit the broker vs. the direct lender\u201d<\/p>\n

BRIAN: It wasn\u2019t by design (which is why I expect legislation that \u201cforbids\u201d my expert opinion on whether a borrower can be approved)<\/p><\/blockquote>\n

The government-banking complex doesn’t want negotiated rates\u00a0for any consumer loans.\u00a0 The government wants to “set” the rates, according to its whim.\u00a0 That’s price fixing .\u00a0<\/p>\n

Don’t believe me?\u00a0 Look at the prestidigitation that just happened in the health care bill.\u00a0 While you were arguing about the hijack of the health care industry, the Federal government quietly nationalized the student loan industry<\/a>.<\/p>\n

“Good.\u00a0\u00a0Lenders are all thieves anyway!”<\/em> you snort.\u00a0<\/p>\n

Think again.\u00a0 San Diego had a thriving student loan industry until last year.\u00a0 Thousands of jobs were eliminated with this bill<\/a>.\u00a0 Moreover, Grandma can’t buy securities now, collateralized by those student loans, in order to juice up the yield on a portion of her portfolio.\u00a0 The student loan industry nationalization is just one more way to buy party loyalty from young voters; the base of this Adminstration’s voters.\u00a0 Loan “grants” will be the “new moniker”, designed to portray the Federal Government as the “kinder, gentler” nanny.<\/p>\n

Shall I continue?\u00a0 When rates fall again (sometime way in the future), the hordes of private companies, wanted to offer graduates a chance to save money, by refinancing or restructuring their student loan debt, won’t be there.\u00a0 Graduates will be stuck paying above market interest rates, to retire debt.\u00a0 Forget that the federally-guaranteed student loans inflated college tuitions, this provision raises the overall cost of a college education (the value of which is debatable anyway<\/a>)<\/p>\n

But I digress.<\/p>\n

As quickly as you could say “expansion of the size and scope of Government<\/em>“, did the left hand start new projects, to get you to stop thinking about the right hand’s health care hijack.\u00a0 Immigration reform is the larger scaled sleight-of-hand but, hidden in the bowels of the Fannie\/Freddie takeover, is the anti-consumer price fixing that is being proposed.\u00a0 Read this<\/a>:<\/p>\n

Geithner called for aligning incentives Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

I said\u00a0new legislation would\u00a0benefit mortgage brokers to the detriment of direct lenders.\u00a0 In the comments, I feared something insidious might happen (responding to Wayne Long): WAYNE: \u201cIt is interesting that the new rules benefit the broker vs. the direct lender\u201d BRIAN: It wasn\u2019t by design (which is why I expect legislation that \u201cforbids\u201d my expert […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-11629","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2103,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2103\/hr-3915-mortgage-reform-and-anti-predatory-lending-act-of-2007\/","url_meta":{"origin":11629,"position":0},"title":"HR 3915: Mortgage Reform and Anti-Predatory Lending Act of 2007","author":"Brian Brady","date":"October 25, 2007","format":false,"excerpt":"Congressman Banker...err...Barney Frank co-authored legislation to \"reform\" the mortgage business on Monday.\u00a0 You can view the 66-page text here. Bullet Points of the bill include: 1- Prohibition of \"yield spread premium\" as compensation to originators. 2- Mandatory licensing of mortgage originators by a Federal registry or state regulator.\u00a0 This Bill\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7888,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7888\/americans-today-are-taxed-at-levels-most-of-our-forebears-would-have-considered-unthinkable-by-our-own-nations-historical-standards-we-are-outrageously-insanely-overtaxed-and-yet-we-shrug-our\/","url_meta":{"origin":11629,"position":1},"title":"“Americans today are taxed at levels most of our forebears would have considered unthinkable. By our own nation’s historical standards, we are outrageously, insanely overtaxed. And yet we shrug our shoulders and say, well, at least we’re not France…”","author":"Greg Swann","date":"April 15, 2009","format":false,"excerpt":"The American Spectator:How did it become \"fair\" for an American family to give to government a third of its income? How did it become \"fair\" for an American family to give to government half of its income? When Parliament passed the Stamp Act in 1765, Americans had never before experienced\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5913,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5913\/treasury-may-lower-mortgage-rates\/","url_meta":{"origin":11629,"position":2},"title":"Treasury\u00a0may lower mortgage rates?","author":"Tom Vanderwell","date":"December 3, 2008","format":false,"excerpt":"WASHINGTON (MarketWatch) - The Treasury Department is contemplating a proposal that would cut mortgage rates for new loans for homes, according to the Wall Street Journal. The plan would employ Fannie Mae to offer mortgages with rates as low as 4.5%, roughly 1% lower than current rates. The measure is\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14949,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14949\/reforming-fanniemae-and-freddiemac-with-marx-rotarian-socialist-rent-seekers-of-the-world-unite-you-have-nothing-to-lose-but-your-brains\/","url_meta":{"origin":11629,"position":3},"title":"Reforming FannieMae and FreddieMac with Marx: Rotarian Socialist rent-seekers of the world unite! You have nothing to lose but your brains!","author":"Greg Swann","date":"August 17, 2011","format":false,"excerpt":"Totally cool. An actual newspaper article about America's favorite welfare program, government subsidized mortgages -- and in The Boston Globe, no less:Amid all the clamor about entitlement reform during the struggle to raise the debt ceiling, one enormous cost - and potential source of future savings - largely escaped scrutiny:\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17684,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17684\/overnight-news-2020s-biggest-news-ci-lost-hugely-to-everyones-benefit\/","url_meta":{"origin":11629,"position":4},"title":"Overnight News: 2020\u2019s biggest news: Ci lost hugely, to everyone\u2019s benefit.","author":"Greg Swann","date":"January 5, 2021","format":false,"excerpt":"Last year was a clinic for the Cautious, but preening Ci came off very badly, compared to compassionate Cs. Whether the impetus is the virus, the response to it or the riots, Cs and Ds are on the move \u2013 away from every pernicious Ci influence. Housing is about kids\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":8620,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8620\/what-happened-what-does-it-mean-and-where-do-we-go-from-here\/","url_meta":{"origin":11629,"position":5},"title":"What Happened, What Does it Mean, and Where Do We Go From Here?","author":"Tom Vanderwell","date":"May 27, 2009","format":false,"excerpt":"Wow!\u00a0 What a day in the mortgage and bond markets today.\u00a0\u00a0 I think it's a good thing to say that while a lot of us saw this coming, very few of us expected that it would happen today.\u00a0\u00a0\u00a0 Let's walk through what happened, what it means and where we go\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=11629"}],"version-history":[{"count":11,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11629\/revisions"}],"predecessor-version":[{"id":11640,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11629\/revisions\/11640"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=11629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=11629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=11629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}