Quote:
Originally Posted by stmatthew
I doubt that they did not explain that these loans were able to go up.
I was a detail person in the construction industry as I did finish work. When I go into a house, I can see all the flaws, and could point them out. But when a home buyer goes into that same home, all they see is shiny paint, and shiny fixtures. They do not see the baseboard that runs on the floor, showing the uneven drywall. They do not see the outlet that is crooked in the bedroom. This is what I believe has happened to many in this issue. ALL they saw was a chance to own a house. They did not hear the broker tell them there was risk. ALL they heard was YES.
Again, did some NOT adequately present the risk involved to consumers. I am sure there was. But I believe it an exception, and not the norm.
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Matt, believe me when I tell you it happened. I spoke with so many people who found themselves in this mortgage crisis mess. I heard over and over again that the details of the loans were not explained fully. People would call crying over the situations they were in, desperately looking for a way out. They didn't even have the option of refinancing through the bank they had the loans thru because it had stopped offering refi's completely. I'm not talking about ignorant uneducated people either. Some of these people had million dollar homes and were professionals.
Did you know that there is no regulatory agency for mortgage brokers? As an insurance agent, I have to take tests, get licensed, agree to abide by ethical standards, maintain my license through continuing education, and I can get into serious trouble for not following these guidelines? I can get into enough trouble that the State can pull my license and I wouldn't be able to sell insurance any more. There's no such regulation with mortgage brokers.
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