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November 2nd, 2007 11:25 PM

Dear Friends,

Last weekend I had the time to view one of my favorite films, NETWORK. This film presents the viewer with thought provoking concepts in regards to television journalism. Since the premiere of this film in 1976, the plotlines of the outageous events portrayed by the characters, has become a common occurrence in our daily lives in 2007.

Television news has become a form of entertainment where the 'newsreader' has become celebrity. Tabloid journalism has become an acceptable device in obtaining private details of previously agreed upon confidential understandings by the main subjects involved. The enticement and the ultimate payments of large sums of money by these companies to abrogate the mutual respect these parties once had, is truly a detriment to our society and the usurpation of its culture in general.

Money corrupts in many ways. The  chronic lure of money and material possessions has created a maelstrom of disturbed inanimate associations with others that lack value, decency and respect.

Power also corrupts and can be used haphazardly without thought of its current or future consequences. Power over others is an elixir that drives many mediocre stalwarts of incompetence to heights bordering on delusion.

With a great cast of characters, William Holden, Peter Finch, Faye Dunaway, Robert Duvall among others, this film tells a story of a veteran television news anchor about to be fired for low ratings. The denouement of this story is the basis for its conflagration.

In some respects, the frustration the main protagonist in the film Howard Beale presents, is the assertion that our lives are devoid of value & others amongst us possess an omnipotent power destroying the character and quality of our existance.

When Howard Beale rose up from his seat in the news studio and passionately uttered "I'm As Mad As Hell & I'm Not Going To Take This Anymore!" in front of a live audience, the energetic forces of reason and common sense were heard!

This film is like art imitating life or the other way around. We are witnessing the unraveling of Western civilization by its denigration of common values and the debasement of common sense. 

Now, how does all of this philosophy of the human condition tie into the mortgage industry, you might ask?

Well for starters, Bill HR 3915 will be voted in committee this coming Tuesday in the House Of Representatives. If approved, this legislation will go to the full House for a vote.

IF this Bill is approved by the House - IF later ratified by the Senate - IF signed by President Bush - MoneyTeam - like other mortgage companies and brokers throughout America, will go out of business.

These are several BIG IFS.

Unfortunately, the climate has changed in Washington as Congress in its eagerness to end the mortgage sub-prime debacle of recent months, has decided to use Draconian, unwise methods to legislate a problem which was created by all of us. The mortgage mess was created by everyone involved in a financial transaction. To some degree all of us in this cast of characters are at fault, including Congress. Yes, Congress has responsibility in this too. The passage of ill conceived financial legislation throughout the years has culminated in the crash of the mortgage industry and the proliferation of foreclosures in this country.

However, the sponsors of this Bill, HR 3915 think differently.

Congressional members, spearheaded by Congressman Barney Frank, the Ranking Member of the House Committee On Financial Services, believe mortgage brokers in particular were the originators of the sub-prime mortgage mess and must be eliminated.

This Bill outlines the steps in which mortgage brokers and/or companies are to be compensated. Also additional regulations in regards to licensing of mortgage brokers is included in the legislation. The alternatives in this Bill suggest the elimination of the YSP or the Yield Spread Premium whereby a mortgage broker receives a percentage of compensation for its services rendered. Most mortgage brokers receive a YSP. This 'rebate' can be used to lower the fees a borrower has, to lower the overall interest rate or APR - the Annual Percentage Rate or the fee can be given directly to the borrower.

If this Bill becomes law, the consequences are obvious.

1. Most borrowers will have to apply at Banks.

These insitutions generally do not have the specific rate or program that a mortgage broker might be able to offer. Higher rates, stringent underwriting guidelines and delays in service are just a few of the detrimental effects this Bill will create. It is folly to consider that banks alone have the ability to provide all variations of loan products under one roof.

2. There will be a gradual end to competition.

When this occurs, there will be an escalation in interest rates throughout the mortgage industry. A monopoly of banks will be the powerhouses of control in all mortgage transactions. If this is allowed to occur, many Americans will not be able to purchase a home.

3. There will be an elimination of niche, specific type lenders.

There are lenders that provide financing specifically for first time home buyers or borrowers that might want to purchase a home or refinance a property considered  out of the ordinary. This would mean a property with less than 500 square feet, a condo development over 4 stories, a hillside home, a house in a flood zone, a coop, a property over 20 acres, rural, agricultural and the like could not be financed.

4. A borrower will lose the freedom in choosing the type of loan best suited for its specific need at the time of application.

There is no need for Congress to force intelligent Americans to accept loan products that are useless and do not help or alleviate a borrowers specific financial situation.

5. The end of financial relationships.

It is becoming evident in American culture of the systemic and continued destruction of relationships in all aspects of society.

The 'Elmer Fudd' history of Congressional intervention in the American economy is documented by the incompetence attributed to the passage of NAFTA, the emergence of China as the main purveyor of inferior goods, the wholesale elimination of jobs to India and other countries in the region due to 'downsizing', the inept enforcement of immigration laws which lowers the standard of living, the concomitant destruction of manufacturing and industrial jobs in America, all of these are actions followed by the consequences of Congressional desires to infiltrate the financial marketplace. The dismal history of excessive regulation imposed on American business has created the flight of engineering and professional jobs to other countries.

Additional consequences are attributed to the type of jobs being created in this country. The proliferation of service sector jobs are unable to sustain the American economy in the future. With trillion dollar deficits and the concerted effort to devalue the American dollar, these are just a few of the occurrences created by the 'bright minds' in Washington. All told, the laws passed by the politicians has engineered the economic problems we are experiencing today.

As you know, we have covered the sub-prime mortgage problem throughout our previous TEAMBLOGS. We encourage you to call your congressman or contact Rep. Barney Frank to end the continuation of ill conceived legislation which would create a deepening financial DEPRESSION in this country.


We welcome REFORM of the mortgage industry but the new measures imposed should not eliminate the choices borrowers are allowed to make in their financial decisions. The goals of REFORM must ultimately benefit the borrower - the consumer.

Our next TEAMBLOG will elevate this discussion in a manner that will reenforce the suggestions and assertions we have put forth.

Please help defeat HR BILL 3915.

We encourage you to get MAD!

Howard Beale tells the truth! Click below!



Thanks Again




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Posted by Jesse Dorado on November 2nd, 2007 11:25 PMPost a Comment

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