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From a fantastic email sent out from Dave Biggers, Chairmain… a la mode, inc.

Background:  I get a lot of prelegislation panic.  This happens all the time.  This, seems to be the real deal.

 

To:     All mortgage brokers
Re:    New regulation we need to stop
From: David Biggers, Chairman, a la mode, inc.

 

The two portions of the HVCC that most affect you are:

“The lender will not accept any appraisal report completed by an appraiser selected, retained, or compensated in any manner by… mortgage brokers…” and

“…any person… who is compensated on a commission basis upon the successful completion of a loan… shall be forbidden from… any communications with an appraiser”

Now…David talks about some of the issues:

The business relationships that you’ve spent years building with agents and appraisers are made worthless overnight

The entire regulation is biased toward the large institutions and against independent appraisers, mortgage brokers, and agents

If this becomes law, what part of your value-added role will come under attack next?

…By every means necessary, you need to contact the powers-that-be and tell them how opposed you are to the HVCC.

That’s all normal stuff, and I hear it all the time.  What we don’t hear all the time is this:

Why are we involved?  Any threat to you is a threat to me. Over 30,000 mortgage brokers use my company’s websites and tools.  And all told, over 100,000 agents, appraisers, and mortgage professionals use our products. 

That is candor and honesty, and leadership.  The REAL reason is that he’s self interested.  And this is good.  Many brokers are good.  Most are bad.  (Yes, most).I don’t know what the odds are that we can stop this regulation; there is talk that it doesn’t apply to correspondent lenders, so most of the good shops will get one or more correspondent lines.   But it worse than the disease, a big wet kiss to the banking industry (like Check  21).   This too shall pass.

However, I’m more optimistic than David.  This too, shall pass, and we will continue our roles and our excellence.   Don’t let this scare ya. Good people will survive whatever nonsense the bad people throw at us.

The problem is that the industry brought this upon ourselves.   Really.  We all did, bit by bit because inquiries became a bidding war to see what value what appraiser could get for what house.  

Now go conquer!

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