Many banks want holesale to survive. We are their cost effective way to originate loans. The dynamics of the business may be changing. Thats true…but if regulations are done fairly then brokers are here for a long long time. We offer the consumer protection from the big banks. Yes the bankers may wish to say brokers destroyed responsible lending but when the chips fall it will be easy for everyone to clearly see the banks have a lot more fault in this mess than the brokers. Thats a fact thats easy to defend.

So now we will all have to accept the congressional and senate hearings. We will have to listen to the media discuss this city or general attorney suing various banks. Then we will see how the regulatory issues will be handled.

Also, retail loan reps have ZERO accountability-vip none zilch. I as a broker sign buyback clauses for fraud. I have errors and emissions insurance. I have a surety bond, I am fingerprinted and put through criminal background checks. I am required to do continuing education in the various states that we are licensed in.

Trust me we have accountability. Retail reps maybe just get fired at which point they go to another bank for employment.

I am all for regulation if it is fair and done with the consumer’s best interest in mind. If that is the case the mortgage broker industry will not only survive but we will thrive.

Sorry Dude– But Brokers are HOSED. Too much risk, not enough accountability, and Big Banking and Regulators want you OUT!!

Time to find a new line of work…….

BOA has their work cut out for them. Brokers do as well.

I think the implode of Countrywide is a turning point for the mortgage business. A price and a level of confidence has been brought back into market by BOA’s agressive move.

There are a lot of signs that this mess is starting to actually unravel. There are further rate cuts on the way. Underwriting guidelines have been sufficiently improved. Banks are recieving new capital, the commercial paper market has improved. The spread between the Libor and Fed Funds rate has been improved.
The dollar seems to have good support. The houses of congress need to reform FHA and get the conforming ceiling limits raises and the white house is about to announce another tax cut to help stimulate the ecocnomy.
The oil markets seem to be stuck below $100.00 a barrell, Gold if anything to me seems like a big bubble as everyone is expecting inflationary pressures to end.

Recently my phones have been ringing surprising a lot more by the borrowers who have been sitting on the fence. Dispite all the doom and gloom I see the light at the end of the tunnel.

It seems to me that the entire mortgage market is set up for a substancial improvement this year. That is unless you just bought the big ulgy 800 lb despised gorilla in the industry). Fortunately me and a lot of my fellow brokers have already made substancial improvements to our operating systems. We are more ready than ever for the market to improve.

I know, the banking big boys will dominate the agenda, and try to blame wholesale for the mess, but that’s no reason not to do what you can to ensure that this is an honorable profession.

Do not sit idly by while your wholesale competitors violate the law. Take the time to report it, to whichever regulatory entity that is responsible for enforcing the law.

Do the right thing, and hang in there. I know that many of you always have.

So what does this all really mean for the mortgage market? The 800 pound gorilla just got bigger and stronger. ?No one is better positioned for tomorrow?s market than Countrywide with its deep penetration and hard core mortgage know how. When the market does stabilize, BofA/CFC will be poised to dominate,? says mortgage consultant Howard Glaser.

My 2 cents?? Brokers are TOAST!! Expect 3-4 Goliaths to dominate everything.