Q A Z Z O O . C O M

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If we as the industry professionals are not willing to stand up and let ourselves be heard we are going to continue to travel down the path of the lending industry but with increased acceleration. The man that’s power washing the sidewalks outside my office was once a very high producing mortgage loan officer. Suffice it to say that he is no longer in the industry. The knee jerk reaction of our political body has crippled an industry based on misguided policies that they themselves put into place.

The names of those in charge of this are not my concern so I will omit them. What is my concern is that it can be cured so easily but this requires people in power to admit that they had made a tremendous mistake. And admitting the mistake would undermine their body of work for the poor and disenfranchised. So instead of taking the correct steps they have taken steps to hurt everyone. Well hurting everyone at least keeps you from being labeled an uncaring capitalist and a slew of other names that lead to bad election results on your next campaign.

Banking and lending has been an ongoing industry for centuries. The Mortgage industry is rather new in comparison. What made mortgages possible in the US and profitable was that the vast majority of those people that took out a mortgage understood the responsibility of a mortgage and the repercussions from not paying it. So the lending industry created guidelines that would ensure repayment of the mortgage on a timely basis. When these time tested guidelines are completely wiped out and we provide mortgages to anyone with a pulse…s*#t happens!

So is it too far for a political mind to travel to think “What if we went back to what did work?” instead a slew of bad mortgages were provided to people that had no idea what they were doing and many times pushed into the predicament by the very politicians that have sworn to assist them. A bad mortgage leads us to more under-performing mortgages and no one thinks to stop the insanity.Is it too far or too distant a memory when foreclosures were at 2.5% of all mortgages and the mortgage insurance that the owner paid by 100% would cover the losses of the 2.5% that defaulted?

No one has a right to a mortgage any more than they have a right to finance a Rolls Royce. Helping the poor with classes to understand credit and budgets would have been a great idea, but giving someone responsibility that they are not prepared for or understand is like handing someone an anchor and wishing them a nice day of boating.

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