Wednesday, March 16, 2011

Reason 8,675,309 why "Financial Reform" Fails to Reform

I am not against the idea of protecting consumers. I have been an advocate for clarifying the muddied mortgage waters. I subscribe to the "knowledge is power" mentality. However where the Frank Dodd bill is concerned I can agree the so called reform is overkill. Note this link includes only a summary as I imagine the 2,319 pages are burdensome in more ways than one. I am facinated by the bills' sponsors... I got their number ;) Regardless this legislation WILL have an impact on home buyers in Oregon's real estate market.

There are many loan officers [originators, brokers, bankers] that are crying the sky is falling, again, over the loan officer compensation but a few of us are just going with the flow. We will adapt like we have to NMLS, HUD's "better" GFE, HVCC [appraiser independence], MDIA, and a few other acronyms that are lost on you. While all of these recent changes have some positive impact they also have their share of flaws and unintended consequences. The addition of the Frank Dodd financial reform continues to paint loan officers into a corner and hits the consumers right where they tout they are trying to protect you... YOUR WALLET! I don't know if I would call it a "slush fund" but higher profit margins to compensate for losses passed on has a similar taste. Interesting and topic worthy none the less.

Senators Rally to Delay LO Compensation Fed Rule
Thanks