Hi Jim, I have been a mortgage broker for approx. 17 years. I live in a small town and see my client’s across my desk. I do not buy leads and have never offered an opt-arm (neg-am) loan in all my years of origination. I have done allot of 2 year fixed rate loans for people that could not qualify for a 30 year conventional mortgage. When I wrote these loans I counseled my clients on paying their bills on time and for me to pull their credit approx. 2 months before their loans adjust so I can take them out of it and into a 30 year fixed. I was very stern in telling them I can’t help you if you don’t keep your bills paid on time esp. their mortgage. Now, for me to help my repeat clients I need an FHA license. In order to get that you have to have 63,000.00 net worth with 12,500.00 liquid. 2 years ago I had that!! Now I don’t, however I still have a 776 mid credit score and current corp. tax returns (and I pay my taxes on time) as I am Inc. Why can’t the feds come into my office do an audit of my files (as they would see I don’t rip people and price my loans with no more than maybe a .50 ysp on my loans. Our association doesn’t help I quit paying dues 2 years ago as I don’t believe they represent the small broker shops. So, now they want all the small broker shops to sign up under a net branch (cause bigger offices have the net worth) they want the now loan officer, with little or no liability and the net branch manager is in another state just collecting their 10% of every loan you originate and for the loan officer (was a broker) now will not want to take a cut in pay just so they can write FHA and have to give 10% of every loan they write and also collect a 450.00 admin fee on every file. HELP. . . WHO IS PAYING FOR THIS FHA LIC.??? OH NO!!! IT’S THE CONSUMER ONCE AGAIN. . . AND THE LOAN OFFICER IS NOT BEING SUPERVISED!!!! Is this helping our industry?? I have seen LO’s make allot of money on FHA. . why don’t they restrict how much LO’s get paid on these loans. . ??? I still believe you should restrict LO’s from ripping clients by limiting the ysp on every loan!!! Also, let me state. . did you know that when I pull credit for real estate loans purposes the Credit Bureaus within 30 minutes have sold my clients info to a lead company and they are now harassing my client.. Oh and by the way I just spent 2 hours on a Sat. talking to them about their family and their kids sports and where they grew up . . and now some guy in a telemarketing room is calling them now to say “I really care about you and your family”. . you know the one that never shows up at the closing table . . #1 He is out of state and #2 that rate is higher and the fees are too. . and the person at the title company can’t get a hold of the loan officer. . ??????? Can we stop the bureaus from selling trigger leads. . why do I have to lock up my files behind closed doors, in a drawer. . where if you want to see you have to have my clients authorization. Please make the bureaus quit selling my clients info. for profit. . . I educate my clients and they don’t want to be bothered. . yes I know about opt out.. it takes time to take effect. . and in the meantime they can’t even put their phone done to eat dinner. . .!!

Also,, , now with the fed’s taking over fannie and freddie. . does this mean now that all loans are going to FHA. . and the FHA lic. requirement??? Regards, Angela

By Angela on Sep 11, 2008

Angela & all other brokers,

You are being intentionally destroyed by big money banks and other corporations. We need to rally together and demand that Congress get of their asses and do something.

Antitrust laws are almost 120 years old and their main purpose was to protect consumers, promote fair competition, low prices and to avoid the concentration of wealth in the hands of a few.

Loan fraud has always been illegal and the Lenders and I-banks were just as guilty of the crimes as originators as they were in recklessly altering guidelines, funding, selling and securitizing the fraudulent loans.

The American Dream of Homeownership has been turned into a giant Ponzi scheme and the only permanent benefactors were the giant corporations.

Experian is not just selling your clients’ info they have a separate company called Lower My Bills.com that originates leads.

Lower My Bills.com is the one with all the dancing “clowns” and animated characters who are deceived into option ARMs. Lower My Bills is allowed to avoid and abuse advertising laws by not properly disclosing APRs and other terms that require broker’s compliance. I guess Experian get around the restrictions because they don’t originate loans.

Experian being able to circumvent advertising laws is most beneficial to those who can afford to buy the leads. This is a questionable practice for fair competition, but much clearer abuses are the reckless changes to underwriting guidelines that promoted stated income loans/fraud, especially when brokers were originating 70% of all loans and required to repurchase loans originated under fraudulent terms.

Loan fraud has always been illegal. It is extremely obvious that the Lenders, I-banks and Credit rating agencies (S&P, Moody’s and Fitch) were the architects of this heinous and criminal enterprise.

http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00001014—-000-.html

“Whoever knowingly makes any false statement or report, or willfully overvalues any land, property or SECURITY, for the purpose of influencing in any way the action of the…any institution the accounts of which are insured by the Federal Deposit Insurance Corporation”

Just because most loans were originated by brokers and fraud appeared to be originated at the application does not mean the Lenders, I-banks and credit rating agencies were not involved. This crisis could have never happened if the guidelines were not altered to favor stated over full doc loans. There was no reason to allow W-2 employees to go stated! These corporations/Execs were the architects of this crisis. They should all be disgorged and convicted.

Here is a copy of my recent amended complaint:

http://www.michaelblomquist.com/Docket/Document145.pdf

If you or anyone else is interested and has CLEAN HANDS (did not commit fraud) send me an email. I have attorneys who would be willing to upgrade my complaint to a class action.

michaelsblomquist@gmail.com

By Michael Blomquist on Sep 11, 2008

Am in the exact situation as Angela. 20 yrs exp and looks like if I’m going to survive I’ll have to sign with a net branch to be able to do Govies. I checked the background with one co. in Florida that was soliciting me and guess what. The two owners just got licensed 2 yrs ago when they got out of high school then a yr later applied and got their business brokerage license and then with the help of family members put together enuf cash to get licensed as correspondents and then got FHA approved. They are mass mailing Fl brokers. Neither one has ever taken a loan app. They hired a local bank underwriter to run the ops center.

By Joe Sasser on Sep 12, 2008

Hi Joe, Sounds like we are in the same boat. What do we have to do to change this FHA requirement. . It’s so obvious!! Can’t the big guys see this?? Do we need to go there with a hammer? This is insane!! Are you in Calif? . . If I could find another broker that wanted to or able to put up $31,500.00 and I don’t want any of “your” commision and you can’t take any of “mine”. . one broker lic. and 2 DBA’s. . I w-2 myself and my husband and everyone else in my office. . and sometimes I can’t take a paycheck with taxes out and have to take a corp. draw when I am able. . . Your thoughts?? Regards, Angela

By Angela on Sep 12, 2008