It seems that with all this loan officer compensation reform, the broker side is really suffering. I am a banker not a broker, and yes there is a difference. Brokers have several commission sources, whereas bankers have a few. This is why broker’s fees always seem to be higher; because they are, and the shadow that follows them around is the same shadow that follows car salesmen around. There isn’t anything wrong with selling cars, but because of a few bad ones, we all get a bad rap. The same is true in the mortgage business.
Broker business has fallen nearly 60% since 2005, and it’s no surprise. This is when I could see things changing, although slow I could see we were headed for a real problem. I remember going to Las Vegas and talking with a cab driver and when he told me that he had all these investment properties that was a problem. People were being put into loans because they wanted them, not because they qualified for them. I can understand and respect why changes were expected and even mandated, however I think things can be too stringent. Change is good, but when we tighten it so much that it doesn’t make sense than we need to go back to the drawing board.
Everyone should be able to make a decent living, by charging a fee for the service they provide, but as always it’s all about balance.
-Mayer Dallal
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