Comments on: Volume Still King - Quality…not so much http://blogs.doublepositive.com/2007/08/28/volume-still-king-qualitynot-so-much/ The Art of Leads and Lead Generation Sat, 31 Jul 2010 13:11:07 +0000 http://wordpress.org/?v=2.6.2 By: Jason http://blogs.doublepositive.com/2007/08/28/volume-still-king-qualitynot-so-much/#comment-4497 Jason Thu, 13 Sep 2007 05:56:48 +0000 http://blogs.doublepositive.com/2007/08/28/volume-still-king-qualitynot-so-much/#comment-4497 Michael, I agree, however going off of what you said. "The banks will suggest greater regulation of mortgage brokers making it harder for the brokers to do business. Why? Because the banks are exempt from such regulations. When banks don’t have to compete, they make money. Mortgage brokers knowingly helped people that could not afford a car payment let a lone a house payment finance a house. You should not be able to make a financial decision for anyone, unless you are a licensed, knowledgeable mortgage broker. The rules should of been much tighter. This was a way for the federal government to take in money, and at the same time get rid of everyone but their best friends the BANKS! Every industry weeds the good from the bad at one point in time or another, whether it be because of new laws and regulations which make things harder, or competition drastically increasing, or both. Today you're either wealthy or poor. Soon there won't be anymore middle class. Michael,

I agree, however going off of what you said. “The banks will suggest greater regulation of mortgage brokers making it harder for the brokers to do business. Why? Because the banks are exempt from such regulations. When banks don’t have to compete, they make money.

Mortgage brokers knowingly helped people that could not afford a car
payment let a lone a house payment finance a house. You should not be able to make a financial decision for anyone, unless you are a licensed, knowledgeable mortgage broker. The rules should of been much tighter. This was a way for the federal government to take in money, and at the same time get rid of everyone but their best friends the BANKS!

Every industry weeds the good from the bad at one point in time or another, whether it be because of new laws and regulations which make things harder, or competition drastically increasing, or both. Today you’re either wealthy or poor. Soon there won’t be anymore middle class.

]]> By: Michael http://blogs.doublepositive.com/2007/08/28/volume-still-king-qualitynot-so-much/#comment-4097 Michael Wed, 29 Aug 2007 15:40:28 +0000 http://blogs.doublepositive.com/2007/08/28/volume-still-king-qualitynot-so-much/#comment-4097 In my opinion the reasons that lead purchasing is down is multi-faceted. First I believe that the majority of internet leads come from sub-prime borrowers. Those that have been turned down before, are upside down on their LTV’s, can’t verify income or assets, they have soaked every cent of equity out of their homes and now they are grasping at straws etc. etc. A year ago there was a home for every loan, not so today. Those loans are just not closing. This is not a negative view, it’s a realistic view. The A paper guy doesn’t need 4 banks competing for their loan. He’s not afraid to sit across from a loan officer and discuss his financial history eye to eye. He doesn’t need to seek the anonymity of the internet. Second, brokers thought that the easy money mortgage game would never end and over extended themselves. Now they have nothing to invest in their businesses and barely make the rent. They won’t admit it but it’s true. That the government wants “transparency” in the mortgage industry is a joke. Just face time for them to show the voters that they care. They care about steroids in baseball but not in the food supply because that is a problem they are unwilling to fix, follow the money to find out why. More paper? More disclosures? Is there any other industry that requires such? The banks will suggest greater regulation of mortgage brokers making it harder for the brokers to do business. Why? Because the banks are exempt from such regulations. When banks don’t have to compete, they make money. Want answers, always follow the money. In my opinion the reasons that lead purchasing is down is multi-faceted. First I believe that the majority of internet leads come from sub-prime borrowers. Those that have been turned down before, are upside down on their LTV’s, can’t verify income or assets, they have soaked every cent of equity out of their homes and now they are grasping at straws etc. etc. A year ago there was a home for every loan, not so today. Those loans are just not closing. This is not a negative view, it’s a realistic view. The A paper guy doesn’t need 4 banks competing for their loan. He’s not afraid to sit across from a loan officer and discuss his financial history eye to eye. He doesn’t need to seek the anonymity of the internet.

Second, brokers thought that the easy money mortgage game would never end and over extended themselves. Now they have nothing to invest in their businesses and barely make the rent. They won’t admit it but it’s true.

That the government wants “transparency” in the mortgage industry is a joke. Just face time for them to show the voters that they care. They care about steroids in baseball but not in the food supply because that is a problem they are unwilling to fix, follow the money to find out why. More paper? More disclosures? Is there any other industry that requires such? The banks will suggest greater regulation of mortgage brokers making it harder for the brokers to do business. Why? Because the banks are exempt from such regulations. When banks don’t have to compete, they make money. Want answers, always follow the money.

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