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September 22nd, 2009 5:36 PM

Dear Friends,

The other day I received a call from the Southern California Better Business Bureau reminding us that our membership has expired and our yearly dues are required to reactivate. I mentioned our willingness to re-enroll and for the rep to call us back the first week in October to finalize the paperwork and pay our dues at that time. Throughout the many years MoneyTeam has been in business, we've been a member of the BBB on a sporadic basis. There were times I felt the service provided was not required due to favorable personal involvement with our clients. There were also times where our monies were earmarked for other concerns or we were unable to afford the dues requested of us when required. The rep also mentioned there were at least 50 inquiries this month from potential clients seeking their unbiased opinion and facts in regards to MoneyTeam's reputation as a mortgage company. Such activity is not considered unusual if there was a scheduled advertising blitz or promotion during the period the inquiries occurred. However, I mentioned MoneyTeam rarely advertises and a good percentage of our clientele is by referral or 'word of mouth'. This activity lends itself to surmise there are many potential borrowers in the marketplace, seeking guidance to where and with whom to place their confidence in either a purchase or refinance transaction.

It stands to reason, there is an atmosphere of genuine distrust towards any financial entity in where one's personal economic fortunes can be unduly affected by unscrupulous or incompetent agents. The breakdown of integrity in all financial matters is due to dishonest purveyors of greed and corruption powerfully displayed by notable interests in government and on Wall Street. Many Americans no longer know where to turn, to invest their hard earned dollars nor believe in politicians seeking to exploit the daily tumult of crisis management, seeking an intervention shrewdly designed to eliminate freedoms as originally envisioned by the Founding Fathers.

Forgive me dear friends, I've digressed. However, I want to mention in passing that I was pleasantly surprised to learn from the BBB that MoneyTeam has never received a complaint in its 20 years of operations! I was indeed ecstatic to hear such wonderful and uplifting accolades from a well respected organization, where its mission is to protect the general public from disreputable businesses in the Southern California area. After my discussion, I came to the realization once again, our involvement in the lives of thousands throughout these past 20 years was well worth our efforts! I was deeply moved and knew full well the sacrifices we made to keep our doors open and to fulfill the responsibilities required by our many clients was a tall order indeed! Vindication of our small mortgage company is just one step towards blissful satisfaction. It's truly a wonderful feeling!

Change For The Better?

While MoneyTeam by all accounts has a reputable following, there are other banking concerns which have become deleterious towards the consumer in more ways than one. I've been involved in the mortgage industry since 1982. Of all the years I've been originating loans, I have never come across, until just recently, a total, wilful disregard for clients we've recommended for mortgage financing. As a mortgage broker we do our best in seeking the lowest rates and the best programs to fit the needs of those seeking to purchase or refinance. During the past 2 years, there has been a 'shakedown' of mortgage bankers and financial companies closing their doors due to the sub prime meltdown which in essence, has created the current Recession.

New government legislation enacted this year, has slowly changed the method in which mortgages are offered to the general public. Stricter underwriting guidelines and an inherent scrutiny of all financial documents has permeated the mortgage industry where there is now difficulty in securing financing for those borrowers with excellent compensating factors. This legislation has ended several of the common place loan programs which were offered during the sub prime mess. Stated income loans, 100% financing, 125% 2nd trust deed loans as well as other financial products became obsolete once the magnitude of the sub prime mess came to light. While I agree several of these loan programs should never have been devised, one needs to be reminded Congress inadvertently gave a 'green light' to such ill advised loans in their eagerness to help constituents unable to qualify in purchasing a home under traditional underwriting guidelines. Ironically, government has thrown its considerable power by directing legislation which seeks to eliminate mortgage brokers from having the ability to be a participant in originating loans and the curtailment of commissions in the attempt to destroy the livelihood of good, honest and decent business owners. In its quest to change the mortgage industry by Draconian inspired measures and to punish the mortgage broker as the scapegoat for the financial meltdown, Congress has created additional problems of its own making.

We are now seeing the effects of government intervention and control in the mortgage industry. It is obvious to any intelligent observer once there are fewer banks, mortgage bankers or brokers in the marketplace, this factor will eventually lead to less competition which will empower the new behemoth banks to raise rates, fees and to provide fewer loan products for the average consumer.

This year alone, we've witnessed more bank failures since the Great Depression and the large banks have acquired the smaller ailing institutions to the delight of those profiting from such outcomes. We are creating banking institutions that are 'too big to fail' similar in concept to the US Government in its inability to manage itself. This quixotic attempt to close smaller banks by rewarding the likes of billion dollar financial conglomerates and efforts to diminish the importance and viability of mortgage brokers, are steps engineered by those harboring plans towards incongruence.

On the next TeamBlog, I will discuss one of the 'Horror Stories' which is a direct result of this new atmosphere in the mortgage industry.

Thanks Again

 

   


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Posted by Jesse Dorado on September 22nd, 2009 5:36 PMPost a Comment

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