December 31, 2007

Death of a Salesman 2007: The Mortgage Broker Profession Goes Away


Not a moment too soon.

Good riddance mortgage brokers. You f*cked America for a commission (like your realtor buddies). Yes, there are some decent and honest ones amongst you. But for the other 90%+, one simple piece of advice:

Hire a good lawyer.

Good luck in your new jobs as debt collectors, call center jockeys and crack dealers. You will not be missed.

It saddens me that now a mortgage professional (Broker or Banker) has about the same credibility as a used car salesman

I guess as an industry we’ve earned that reputation. We sold too many of the wrong types of loans to the wrong types of people. There were too many crooks out looking out for their own paychecks, and not their customers best interests.

Its really a shame because mortgage transactions are usually the biggest financial transaction the average American makes. Mistakes in this industry can really damage peoples lives.

23 comments:

Frank@Scottsdale-Sucks.com said...

Remember this past spring when I was complaining about the scum mortgage brokers in my office building who would disturb everyone, running up and down the halls high-fiving every time they screwed another "homeowner?"

They're long gone. And out of business. And broke.

MUUUAAAAHHHHHHHHH!

MarkIFC said...

"It saddens me that now a mortgage professional (Broker or Banker) has about the same credibility as a used car salesman"

When I got into the mortgage business 22 years ago, a Loan Officer was a highly respected position. Then the banks started having us push all these exotic mortgage products-- because the return to them was so great. Then "Boiler Rooms" started popping up during the refinance boom. It was like a Gold Rush-- thousands heard their was quick easy money to be made so they left their auto mechanics jobs and waiter positions to sell mortgages.
It was not about building a biusiness as I had done and being a respected professional to all these Gold Seekers. It was about one thing-- make a quick buck.

I hope now that all the Gold Rushers are leaving the business, those of us who have built reputations as financial advisors with the consumer's best interest in mind can bring some respectability back to the profession.

BTW, during the last 10 years I did no Option ARM loans and I did no Interest Only loans.

Anonymous said...

Good luck in your new jobs as debt collectors, call center jockeys and crack dealers. You will not be missed.
---------------------------

Corruption never changes. These people will just get other jobs, like working for the department of motor vehicles, street sanitation workers or any other incompetant and lazy group and put in for bogus overtime that will cost taxpayers millions.

Anonymous said...

A mortgage broker used to be a professional. Now they are known as shysters. The MBAA refused to police their members and fought tooth and nail against every government attempt at reining in the loose cannons. Now they will all pay the price. I surely will not go to a mortgage broker when I hunt for a foreclosure in 2009.

Punked said...

Glenngarry Glenn Realtor--bhwaaaaaaahahahahahahahahaha!

Anonymous said...

What you are not thinking about(besides for the tens of thousands of good paying jobs going away forever) is that banks will control pricing of mortgages without any competition from small firms? This will not good for the customer. Lack of competition will lead to higher rates and fees. It ALWAYS does.

eric in vegas said...

Across the street from me lives an out of work ex mortgage lender. A high school dropout drug addict. His mom got him a job during the housing boom and he turned everything around. He became the star at parties; the proof that anyone could make something of themselves. No one could believe this was the same punk kid they knew 10 years ago. Now, the party's over. He foreclosed on his house and he's back to square one living with mom again and jobless. But at least this time he's got a Navigator he bought with heloc money.

Anonymous said...

BTW, during the last 10 years I did no Option ARM loans and I did no Interest Only loans.

Let me guess... you talked genX suckers into buying more house than they could afford with an ARM then told them to sell or refinance in 2 years?

Or perhaps you talked the older folks that have been in their homes for 20 years to refi into an exploding ARM?

edd said...

from http://tinyurl.com/jzx6x
On PBS, back in August 2005 ...
Christopher Thornburg of UCLA's
Anderson School of Business:

"….This can only work as long as
you have new people to enter the market and keep this [housing] pyramid growing."

roy in florida said...

markifc,

Did you do any ARMs? They have no place in home finance either; they only serve to inflate house prices.

It's a shame that 99% of brokers give the rest of you a bad name.

roy in florida said...

Higher rates and fees will help to bring house prices down to where they should be.

MarkIFC said...

"I surely will not go to a mortgage broker when I hunt for a foreclosure in 2009."

Where are you going to go? I hope not your local bank! You'll surely end up with an interest rate higher than this Mortgage Broker can get you.

I tell people all the time, I can place their loan with the bank at the corner for a lower rate and lower costs than if you walk into that bank and apply there directly.

Impossible you say? Not at all. The banks want us to get them loans. They have two different pricing scales-- wholesale & retail. If you walk into the bank branch, they are going to offer you their retail rate which has to cover their overhead, salaries, ect.. I get their wholesale rate onto which I add my profit. Since my $250 per month rent (in other words, my overhead) is way less than the rent they are paying on their marble and smoked glass branch office, I can offer a rate usually at least 1/8% less for the same closing costs.

Check it out yourself-- check rates at some local banks and then with a "reputable broker". There still are some. Don't however fall for the DiTEch and Countrywide speals.

MArkIFC said...

"Let me guess... you talked genX suckers into buying more house than they could afford with an ARM then told them to sell or refinance in 2 years?

Or perhaps you talked the older folks that have been in their homes for 20 years to refi into an exploding ARM?"

I forgot to mention, during the last 10 years I did maybe 10 ARM loans. These were at the insistance of the borrower and usually it was a case where they wer only planning to be in the house for 3 to 5 years. So why not get a 4.25% instead of 6% for the 5 years. In my 22 years in the business I have NEVER done a 1 year ARM loan.

I never talk anyone into buying any price home. They come to me requesting what they want to borrow. If anything, I advise young first time buyers into buying something reasonable. But it never fails-- instead of the 40year old starter home in an older neighborhood they have to have that new 4 bedroom 2 story.

Yes there were a lot of shisters who got into the mortgage business. Bit the root of the problem goes back to our societys "I WANT IT NOW" mentality. Just like my wife's best friend--- when she was looking for a house I told her not to look at anything more than $125,000. But she wanted something brand new and it HAD to be in the Yuppie part of town. So she bought a new house from a builder on a zero down interest only ARM loan the builder arranged. She'll be in foreclosure next year guarranteed.

Edgar said...

Keith, you realy shouldn't make fun of the jobs people are forced to take. Just because someone works at a call center doesn't make you better than them. It is the reality of the great divide / depression. One of these days you may grow up. You aren't better than anyone else because you have more money, and that goes for the rest of you too. Azholz like you are why the communists will come to power in this country some day.

Anonymous said...

Edgar, F*ck YOU. You must be a punk B*tch SF liberal like the one who back-talked me last night and this morning is looking for his teeth in the hospital. Rejoice and savor the Tony Soprano wana-bes now stuck in shitty jobs to get money to by Ramen noodles.

We responsible savers will march on a road of bones. I will use yours for soup, Punk. F*ck off and DIE. WE ARE BETTER THAN YOU.

For an as*hole punk view, read below...

Edgar said...
Keith, you realy shouldn't make fun of the jobs people are forced to take. Just because someone works at a call center doesn't make you better than them. It is the reality of the great divide / depression. One of these days you may grow up. You aren't better than anyone else because you have more money, and that goes for the rest of you too. Azholz like you are why the communists will come to power in this country some day.

January 01, 2008 3:19 PM

F*CK YOU EDGAR, WHEREVER YOU ARE.

Tyrone said...

Going forward, realtors/brokers should have to disclose all previous sales/loan information, including any that resulted in default/foreclosure. The consumer should know the track record of the person they are dealing with.

Anonymous said...


What you are not thinking about(besides for the tens of thousands of good paying jobs going away forever) is that banks will control pricing of mortgages without any competition from small firms? This will not good for the customer. Lack of competition will lead to higher rates and fees. It ALWAYS does.


The competition will be between the banks and online, such as E-Loan and LendingTree. Get with the times. Why would anyone need a corrupt middleman to skim off the top? Besides, they have shown themselves to be criminals who are only interested in screwing their customers.

Anonymous said...


Where are you going to go? I hope not your local bank! You'll surely end up with an interest rate higher than this Mortgage Broker can get you.


Where do you think the mortgage brokers get their rates from? They don't have any money.

Anonymous said...


He foreclosed on his house and he's back to square one living with mom again and jobless. But at least this time he's got a Navigator he bought with heloc money.


When the tide goes out, we will see who's been swimming naked. Just like the dotcom bubble made everyone an investing genius, the housing bubble made everyone a financial genius.

Frank@Scottsdale-Sucks.com said...

Keith, you realy shouldn't make fun of the jobs people are forced to take. Just because someone works at a call center doesn't make you better than them.

I don't think that was the intent. I think his point is that people who were driving BMWs a year ago and were giving everyone else major snob attitude must now lose it all and go work in a call center. And that's exactly how these people acted.

Anonymous said...

funny how there is a depression out there, yet nobody on HP is affected. every time qweefer asks his "how much do you make" poll, everyone here makes $250K. So either you are all full of shit or this depression you keep talking about doesn't exist. Or most likely both.

sammythebarber said...

What's kind of funny about mortgage brokers is that they always seem to have an answer for everything. Is there a school for that?

MarkIFC said...

"The competition will be between the banks and online, such as E-Loan and LendingTree."

OMG! The public is so ignorant about mortgage lending!

"When Banks Compete You Win" NOT!

These services are subscription lead providers for mortgage lenders. THEY ARE NOT WORKING FOR THE CONSUMER!
Mortgage lenders sign up with them to be provided leads. For this service, it costs anywhere from $500 to $2,000 per loan. (Last I checked, Lending Tree was around $1,350 per loan plus the hefty sign-up fee) Where do you think that fee comes from--- added to the cost of the loan or the rate.

The three "competing" quotes you get are not necessarily the three best rates available. They are the next three lenders on the list to be given leads.

And the biggest joke is the list of lender's rates in the newspaper. Mortgage professionals call it the "Liars List". It's funny how they will advertize this rate lower than anyone else but when you call the rates have unfortunately gone up-- "Oh, but we have this great Option ARM program for you".
Or they still have that rate with no points but wait until you see how much the "closing costs" end up being.