{"id":1460,"date":"2007-05-22T16:03:21","date_gmt":"2007-05-22T23:03:21","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1460"},"modified":"2007-05-22T16:03:21","modified_gmt":"2007-05-22T23:03:21","slug":"extreme-transparency-in-lending","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1460\/extreme-transparency-in-lending\/","title":{"rendered":"Extreme Transparency in Lending"},"content":{"rendered":"

Mortgage brokers have been under assault by the extreme transparency advocates<\/a> these last few years. Very smart people have embraced technology as the catalyst of change. They proclaim that technology will change how the American public compensates mortgage brokers. I think their advocacy has some merit.
\n
\nMost consumers just don’t care about extreme transparency in lending.<\/strong><\/p>\n

Oh, sure. The engineers who read Milton Friedman<\/a> and St. Augustine<\/a> may actually adopt a moral position about the evil greed that permeates our industry. They might vent about the immoral nature of the “secret profits” earned by originators who do business the “traditional” way. These consumers, a very minor subset of the population, are predestined to mistrust anything that smacks of traditionalism. Last decade, full-service securities brokerage firms advised people that their high commissions were actually more effective to get investors to buy and hold rather than to trade incessantly. Still, the engineers distrusted the establishment while they day-traded their retirement accounts away on high-flying internet IPOs through ScottTrade<\/a>.<\/p>\n

This decade’s real estate boom brought out these “efficiency experts” again. They looked at the transaction costs in lending and proclaimed, “Something is awry!” This breed of consumer, is never, I repeat, NEVER going to trust a an originator no matter how inexpensive the service offering is. A mortgage originator can point to the value a trained advisor<\/a> brings until she is blue in the face and this crew will run to Lending Tree<\/em> faster than you can say free pocket protectors. This tiny portion of the population is not going to do business with me or you or your cousin Angela. Ever.<\/p>\n

Most consumers just don’t care about extreme transparency in lending<\/strong>.<\/p>\n

I sent out an e-newsletter to 300 past clients, highlighting a few articles, all dealing with extreme transparency in lending. These were the responses I received:<\/p>\n

1- One nuclear engineer e-mailed me proclaiming that he would be processing his own files in the future and insisted that I waive the $495 processing fee. In exchange for the fee waiver, he would order his Read more<\/a><\/em><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Mortgage brokers have been under assault by the extreme transparency advocates these last few years. Very smart people have embraced technology as the catalyst of change. They proclaim that technology will change how the American public compensates mortgage brokers. I think their advocacy has some merit. Most consumers just don’t care about extreme transparency in […]<\/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":[5],"tags":[],"class_list":{"0":"post-1460","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2150,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2150\/mortgage-grader-revolutionary-or-just-one-more-marketing-widget\/","url_meta":{"origin":1460,"position":0},"title":"Mortgage Grader: Revolutionary or Just One More Marketing Widget?","author":"Brian Brady","date":"November 1, 2007","format":false,"excerpt":"Mortgage Grader is a consumer-operated, automated underwriting system. Jeff Lazerson, its founder, has been working on this idea for 3-4 years. It was released this summer. Consumers enter information and are issued an approval. The mortgage grading engine mashes up various automated underwriting systems (FNMA Desktop Originator, proprietary sub-prime engines,\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11629,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11629\/originator-compensation-overhaul-to-cost-consumers\/","url_meta":{"origin":1460,"position":1},"title":"Originator Compensation Overhaul to Cost Consumers","author":"Brian Brady","date":"March 23, 2010","format":false,"excerpt":"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\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":2892,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2892\/zillow-mortgage-marketplace-one-way-transparency-like-a-bad-online-dating-site\/","url_meta":{"origin":1460,"position":2},"title":"Zillow Mortgage Marketplace: One Way Transparency Like A Bad Online Dating Site","author":"Brian Brady","date":"April 4, 2008","format":false,"excerpt":"Zillow Mortgage MarketPlace rang the opening bell and loan requests came flying in the door. I was pleasantly flabbergasted! It's no secret that I'm a Zillow-phile; I believe they are leading the way to transparent loan and real estate transactions. I'm tenuous, however, about spending too much time there. My\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":930,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/930\/interview-the-x-broker-jeff-corbett\/","url_meta":{"origin":1460,"position":3},"title":"INTERVIEW: The X Broker, Jeff Corbett","author":"Brian Brady","date":"January 22, 2007","format":false,"excerpt":"Jeff Corbett is one of the rising stars in Real Estate 2.0 . I interviewed Jeff last month in Laguna Beach, CA. Jeff is a remarkably shy person who bears little resemblance to the hard-hitting, on-line, pit bull who advocates transparency in mortgage brokerage and banking. He is unfailingly polite\u2026","rel":"","context":"In "Interview"","block_context":{"text":"Interview","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/interview\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3164,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3164\/the-unchained-originator-ken-stampe\/","url_meta":{"origin":1460,"position":4},"title":"The Unchained Originator: Ken Stampe","author":"Brian Brady","date":"May 26, 2008","format":false,"excerpt":"I was disappointed with the low turnout of loan originators at UNCHAINED. There were two local originators, who attended our Mesquite library performance, and my buddy Ken Stampe. Ken and I met in 2006, on Active Rain. He was one of the first to sign up for Unchained. His only\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":3237,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3237\/zillow-mortgage-must-verify-consumers-to-become-a-marketplace\/","url_meta":{"origin":1460,"position":5},"title":"Zillow Mortgage Must Verify Consumers To Become A Marketplace","author":"Brian Brady","date":"June 16, 2008","format":false,"excerpt":"Mike Mueller is leaving the Zillow Mortgage Marketplace. A poor consumer performance review drove him to do just that. From the consumer review on Zillow Mortgage: Rating: 1 \/ 5 Comment: I asked for conforming quote, got sent jumbo quote with huge fees. I even specifically noted the request in\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\/1460","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=1460"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1460\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}