Friday, June 24, 2011

I watched this video this morning and tried to post a comment. I was blocked by the site's blacklist. WAH???

Here's my comment:

I hope for good results from the Consumer Financial Protection Bureau.

In response to your video, the bigger issue with these so-called "in-house" providers is the underlying conflict of interest.

The consumer loses their position as owner of the transaction as providers are motivated to serve their customer, the source of referrals.

I've been in this industry for over 35 years and watched on the front lines as real estate brokers in the quest for new profit centers invaded related businesses.  The unintended consequence was a collapse of the entire system.  I have never placed blame for the credit crisis on the Community Reinvestment Act or other government initiatives.  The media and others focused on these programs because they are easy to understand.  The real culprit was the controlled business crack in the dam of RESPA and the slow degradation of standards which started after large real estate brokerages entered the field of mortgage brokerage and changed the relationships in mortgage banking from separate but equal to that of master and slave.

We can fix this.  We can identify and remove systemic conflicts of interest, restore good practices and heal our industry.

And here's the video:

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