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March 10, 2011


Surrey Mortgage Broker

A second mortgage should not be a grueling adventure. When you hire a competent mortgage broker to give you the information you need to make an informed decision effectively to reduce your stress level by eliminating the unknown. This means that when all is said and done, you will feel good about your decision and trust that you have made the best choice for your financial future.

Kim S. Curtis

As an industry veteran for almost 30 years, I've been on the big bank side as well as the entrepreneurial side, starting up a successful independent mortgage banking firm, one of the largest on the east coast that still exists today. I believe all mortgage bankers, whether brokers, independent mortgage bankers, or bankers, should be held to the same standards, MOST IMPORTANTLY, licensing. Many originators who cannot pass the NMLS tests have flocked to our largest financial institutions and hide behind the Banks' exemption from true licensing. If you sell insurance, you must apply for a license and take a test whether you work for an independent agency or a regulated financial institution. If you practice law, you must apply for a license and pass the Bar, whether you work for an private firm or public company. If you act in the capacity of a CPA, you must apply for a license and pass exams, whether you work for a private firm or public company. If the Government, regulators, and our DC representatives believe that the mortgage industry deserves the changes we've been handed, then they MUST impose equitable standards across the board, private or public. Originators of mortgage loans should not be allowed to hide behind the exemption of the banking system; these individuals should also pass the rigid licensing exams their fellow independent competitors must pass. It's just good business and it is the right thing to do.

Kim S. Curtis
President and CEO
Tidewater Home Funding, LLC
Chesapeake, Virginia

Anthony T. Accetta

Reply to LG:
I am familiar with virtually every level of the mortgage industry, and I agree that broad application of regulatory, civil, and criminal laws should be applied across the board. By fraud, I mean lies, deception, withholding, falsification, and false representations at every level of the origination, underwriting, closing, packaging, and securitization processes. And I assert that such behavior has been broadly practiced by individuals and institutions at the highest levels at every step of the real estate sales process. And that includes brokers, lenders, investment banks, commercial banks, low level functionaries and highest level executives. Our housing collapse was no tsunami, no perfect storm. It was the result of deliberate fraud gone viral. Check out and my book, You the Jury, How Wall Street Cashed In On the American Dream and Nearly Killed It. You'll see my background, and understand that there is a systemic, not an individual, problem. And one thing more. If you've been in the business, you know I'm right. The good guys in the mortgage business are a small minority. I hope you're one of them.


To Mr. Accetta,

I would think to believe that a person of your education and background would take the time and read the Fed Rule prior to making statements about it. Do you know the difference between a Licensed Broker and a Licensed Lender? There isn't much. I've been a Licensed Lender for over fifteen years, but I am still referred by most as a broker. If there are going to be rules imposed, everyone should be treated equally. Level the playing field. RESPA regulations should apply to everyone, not just one group or another. As for mortgage fraud, I am not sure what you define as mortgage fraud, but if you are referring to things such as stated loans as fraud, the banks were the one who created these products and all of the sudden it's fraud and the brokers are to blame for it.

Anthony T. Accetta

For over 40 years mortgage brokers have been the single largest source of fraudulent loans. MARI estimates that 70% of mortgage loan applications contain at least one material false statement. Those applications start with mortgage brokers. I suspect the real percentage is over 90%. While there is plenty of blame to go around, and while mortgage brokers are ultimately tools of banks and investment banks, they are the starting point. Much more needs to be done. DOJ has failed its duty to enforce the law. The SEC is a hypocritical farce. The industry, systemically, is corrupt, and has been so for over 40 years. It is NOT just a "few bad apples." Check for a comprehensive history of who does it, how it's done, who knew that fraud was rampant, and the long list of public official failures to hold the rich and powerful accountable. The Fed's rule is not enough, but it's something of a start.

Steve Stocklen

To Anti and One Citizen, by your comments you have no idea what's going on in our industry. Let me give you a brief history lesson. Wall Street created these programs, approved the parameters, bought the loans and sold them on the secondary markets. The largest banks in the country in most cases sold the same programs as the mortgage brokers did and still do today for that matter. As mortgage brokers we have had to disclose our yield spread premiums to the borrowers since 1997. Banks on the other hand have not had to disclose this premium (in other words our gross profit, defined as gross income from which we have to subtract our fixed overhead such as rent administrative payrolls, utilities and variable overhead such as loan officer compensation, credit reports and taxes. Whatever is left equals profits) Also the government has limited the amount the mortgage industry could make on a loan to 5% of the loan amount, at least in Illinois since 2005. This included our yield spread premium, FHA's 1.0% upfront MIP (in Illinois anyway)and any other charges including some title charges. Federally charted banks on the other hand have NOT had to abide by the same rules and DO NOT have to include the yield spread premium on their closing statements so it is not calculated in the 5% rule, All along it has looked to the consumer and consumer advocates that we were making huge profits(with the disclosure of the YSP on the closing statements) while the banks have been able to make even more on loans because of the Government's disclosure policies allowing them not to disclose the yield spread they make. I am sick and tired of Mortgage Brokers being thrown under the bus for business practices that have originated both out of Government regulation and Wall Street incompetence while not being able to compete on the same playing field!!!!

Greg SHat

Isn't it typical the comment from the one that said let them go out of business...He/she chose to lump a entire industry based on the "bad apples". I guess he might be one of the ones that can not read or write or he would have done his home work and knew what he was signing. The good mortgage brokers work for the consumer and yes there are always some that shouldn't be in the business. Why don't "BANKERS" have to pass the new NMLS license system to lend? They can hire the ones that can't pass the test (BANKERS).

Now to the new law, it basically causes the consumer NOT to get a loan because the small loan amounts ($0 to $65,000) do not produce enough commissions to even do the loan, who gets hurt?? THE CONSUMER...

I guess the gov't needs to tell everyone in the US how much money they can make, maybe they will also pay our mortgages payments we owe?

Business man

I love reading the comments. You can tell who actually understands the business and the rule and who only understands a small portion. It is easy to take sound bites out of the new rules, apply it to sound bites of years past and then scream how it is a long time comming. This inablility to look at the whole issue is what has allowed the passing of the new health care and other elimination of freedom that continues to fade us toward socialism. I love this country but in 100 years, it will be the worst in the world as we bury our selves in our own ignorance.


To OneCitizenSpeaking,

If you bothered to read the rule you would see that they are eliminating the ability to pay commission to Loan Originators. This unconstitutional rhetoric belongs in countries like Cuba and China. I sometimes forget, but I thought we lived in the United States of America.


If you had bothered to read the actual legislation, you would have seen that originators can charge borrower anything they want (based on a percentage of the loan, based on the rate, based on the color of the moon) AS LONG AS THEY ONLY RECEIVE COMPENSATION FROM THE BORROWER. If the originator receives income from any other source, the rules apply. The issue is a faux issue being used to raise money from the trade associations to fight a non-existent battle.

Jeff Hart

To Anti_facist_uneducated_moron

Apparently, you watch MSNBC...and drink whatever they serve you, since you comment on something you apparently know nothing about. I hope you are a homeowner, because if a TRO is not entered against this, your value will fall another 30% from todays value. Banks are protected in this law, eventhough they created the 'toxic' programs. In regards to 'steering' clients? I can only speak from my own experience, although never did I take a loan from one lender, and switch to another, cause they were offering an additional .25%, by God, you would think the increase in commission was $10,000, it wasn't. I just hope your in healthcare industry, your day is coming.....


Banks were doing the same damn thing you MORON!!!!!!!!!!!!!!!! So the problem does not get solved by this legislation.

Either way none of these loans are bign done anymore as it is and the legislation that has been passed in the past 3 years MDIA, HVCC, New RESPA and now LO Comp have done nothing but increase the cost to originate and hurt the consumer. This law does nothing but make the market less efficient than it already is, and will guarantee one thing for the consumer. HIGHER RATES AND MORE EXPENSIVE LOANS. That is a guarantee.

Loan Broker

I can only guess that anti_fascist_freedom_fighter had his home foreclosed upon because he did not read the mortgage he was signing. It is easy to blame loan brokers for the mortgage mess but brokers were not lending their money. It was the banks and investment firm that were pushing toxic mortgages. The majority of loan brokers work in the interest of their clients. What's next? Banning commission income from car salesmen and insurance brokers?


Let them go out of business! Did anybody miss the fact that just three years ago mortgage brokers were gladly selling "Liars Loans" and "Neutron Loans" - loans with zero security, and taking huge fees and commissions, and pushing people into refinancing their homes every two years, just to shave equity from the homeowners? Not only that but many of these loans were Pick-a-payment, negative amortizing loans that were guaranteed to get the homeowner foreclosed on, by the terms of the loan. WHY DID THEY DO THAT? TO GET THE COMMISSIONS! These people are leeches, scum sucking bottom feeders that singlehandedly destroyed the lives of millions of people and singlehandedly created a new class of people in America: The HOMELESS CLASS. They ARE THE ENEMY of the People! LET THEM DIE! No, I didn't meant that, what I meant was KILL THEM ALL, LET GOD SORT THEM OUT!

Joseph Johns

Those are some heavy weight law firms that NAMB has hired.

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