Mortgage Brokers Oppose Attorney General’s Proposition

An article published in the Boston Herald takes a look at 1st and 2nd mortgage brokers’ reactions to proposed regulations for the industry. According to the article:

Mortgage brokers are in an uproar over Attorney General Martha Coakley’s proposed regulations for the industry, saying her plans would gut how they’re paid and potentially lead to thousands of job losses.
If the new rules take effect as currently written and explained by Coakley’s staff, Cuff said they’ll “dramatically affect” the entire mortgage-loan industry and “overnight” could lead to the closure of hundreds of mortgage-broker firms and the elimination of thousands of jobs.

The result could make it more difficult for lower-income and first-time home buyers to get non-subprime mortgages, he said.

Coakley, who’s attempting to crack down on mortgage-loan abuses that were rampant before the recent collapse of the subprime-loan market, yesterday shot back that brokers and others never brought up the compensation issue during recent hearings on her regulations.

Obviously, changes need to be made. But should we accept the first propositions that come, even if they aren’t the best solutions? What’s the point in making changes that just lead to other problems? To what end are we benefited if we jump out of the fire and into the frying pan?

November 13, 2007 | Filed Under 2nd Mortgage 

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