subject: Federal Judge Lifts Stay-Regulation Z is now in Effect [print this page] Federal Judge Lifts Stay-Regulation Z is now in Effect
Tucson Mortgage andTucson Real Estate Business just got tougher.Regulation Z andLoan Officer Compensation has been affected by aFederal JudgeRuling today,April5,2011.I would like to start this article off with a direct quote from theFeds Response filed yesterday: "It is certainly the case that the public interest favors allowing the Rule to take effect to put a stop to practices that the Board has found to be "unfair." As the Board found, the current system causes "consumers [to] suffer substantial injury by incurring greater costs for mortgage credit than they would otherwise be required to pay." 75 Fed. Reg. at 58515. Each day that the Rule's effective date is postponed is another day consumers will suffer this harm, and their injury, too, is irreparable."
Today aFederal Judge ordered theEmergency Stay that was granted on April 1,st, 2011, lifted. That means that as of now,Regulation Z as it pertains toLoanOriginatorCompensation, has been implemented. Today is a bad day forMortgage Industry Professionals, but an even worse day for the Consumers that this law was intended to protect. It is absolutely fascinating that our Law Makers can't decipher facts from propaganda spewed from "Consumer Interest Groups" that don't even realize that Stated Income Loans and Pick-A-Payment Loans haven't been around for Years. Credit quality of Single Family Home Mortgages hasn't been higher than probably any in point in history, as it has been for the last three years. For some reason, that no one on planet Earth that knows anything about the Mortgage Industry can figure out, the Lawmakers thinkMortgage Brokers are selling bad Mortgage Products to Consumers. Here's a tidbit of information to Lawmakers: Mortgage Brokers sell products that come from other institutions.Mortgage Brokers don't create,underwrite, or develop Loan Programs for Consumers. They areBrokers of other's products.Harsh regulations forMortgage Brokers don't change anything, other than creating a hardship for the workers at the bottom of the hierarchal ladder. So if you were really interested in protecting consumers, you would regulate the institutionsthat actually develop and profit the most from these products.It would be very interesting if Lawmakers could provide even one single fact that Consumers pay more for a mortgage from aMortgage Broker, than from aBank. I have been in this business for a long time, and Retail Banks are the ones sticking it to the Consumer.Brokers have always been an avenue were consumers could go to get a substantially lower cost mortgage. It is outrageous that our United States Government is going to put hundreds of thousands of Americans who work in theMortgage Industry at risk, by implementing Financial Reform Laws, that only protect Investment Banks at the expense of the Consumer. I think that it is not possible with all of the processes that it takes to make laws, that Lawmakers never realized the impact that this will have on workers in our industry and consumers alike. There is an agenda, and whether you are employed by a Retail Bank,and are having your pay reduced, or if you are a one man broker shop, you are a pawn in whatever our government is trying to accomplish. Who would have ever thought that our government would actually implement laws that specifically won't allow you to get paid on services rendered? Under the guise of protecting consumers, our Government has made it nearly impossible for aMortgage Broker to pay their employee if the Consumer picks the mortgage scenario with the most flexible terms, and the least amount of cost (Buyer Paid). We are all Consumers, so to allow Lawmakers to pass laws that aren't in our best interest, is really our fault for electing them. Is the US Government in violation of Anti-Steering Laws by requiring Mortgage Brokers to give Consumers the product that absolutely has the highest fixed cost(Lender Paid)? Just think about it, it is now illegal to lower your fee's on a loan after you quote it. Now it is against the law to give your client a better deal. What industries are next? Today is an extremely sad day for Democracy and Free Enterprise in America. We just became a Socialist State. Make sure you vote in the next election.By the way, JP Morgan Chase profits for 2010, over 17 Billion, plus another 12 Billion in a reserve account to cover Mortgage Losses ( a majority of their portfolio is covered by a US Government Guarantee in excess of 30 Billion). Total : over 29 Billion. The new regulations will boost their profits this year, as they have slashed the pay plans of employees in their Mortgage Division, thanks to the newRegulation Z guidelines.
