{"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_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":"","jetpack_post_was_ever_published":false},"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":8627,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8627\/lower-june-2009-mortgage-rates-rely-on-central-bank-action\/","url_meta":{"origin":11629,"position":1},"title":"Lower June, 2009 Mortgage Rates Rely On Central Bank Action","author":"Brian Brady","date":"May 28, 2009","format":false,"excerpt":"May Day in the mortgage rates market is over.\u00a0 The market got spooked by triangulated opinions about the viability of the US Treasury as a going concern.\u00a0 In response, mortgage traders sold off mortgage-backed securities, some 3-4%, in 4 days, to drive mortgage rates from 4.75%\u00a0 to the 5.375% current\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":15260,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15260\/the-greatest-listing-single-site-ever-created\/","url_meta":{"origin":11629,"position":2},"title":"The Greatest Listing Single-Site Ever Created!","author":"Sean Purcell","date":"October 31, 2011","format":false,"excerpt":"...when I laid down to go to sleep, all I could hear, over and over in my head, was Robert Duvall saying to John Wayne in the movie True Grit: \"I call that bold talk for a one-eyed, fat man!\"","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17487,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17487\/overnight-news-the-fall-back-for-the-fall-back-cheating-terrorism-welcome-to-brown-shirt-america\/","url_meta":{"origin":11629,"position":3},"title":"Overnight News: The fall-back for the fall-back cheating? Terrorism. Welcome to Brown\u00a0Shirt\u00a0America.","author":"Greg Swann","date":"November 18, 2020","format":false,"excerpt":"Americans watched extortion on a live Zoom call last night: Wayne County election officials were doxxed and their children were threatened \u2013 Mafia-style \u2013 before the Zoom call was cut off \u2013 presumably when the threats escalated even more. If the terrorists who effected this arm-twisting are not arrested by\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":6980,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6980\/bankrupt-ideas-for-changing-bankruptcy\/","url_meta":{"origin":11629,"position":4},"title":"Bankrupt Ideas for Changing Bankruptcy","author":"Sean Purcell","date":"February 20, 2009","format":false,"excerpt":"Two excerpts from a local article:\u00a0 Bankruptcy reform could help hard-up homeowners Overwhelmed by debt from credit cards, a $536-a-month truck payment, $8000 in overdue property taxes and two mortgages, the single homeowner is hoping (San Diego bankruptcy attorney) Colwell can remove the $84,000 second loan on his home, which\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":3251,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3251\/redefining-mortgage-disclosure\/","url_meta":{"origin":11629,"position":5},"title":"Redefining Mortgage Disclosure","author":"Brian Brady","date":"June 21, 2008","format":false,"excerpt":"Jeff Corbett announced that he launched Ratespeed this week: What is it? An anonymous, automated, transparent, mortgage program and interest rate pricing pre-qualification Search Engine widget, thingy. Why is this important? For the first time anyone can transparently access wholesale direct mortgage interest rates and program quotes without having to\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":[]}],"_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}]}}