Ethical Mortgage Broker

Ethics In the Mortgage Industry

Recently in an open discussion a mortgage broker I know  FreEthical Mortgage Brokerd Glick said, “I just had a wholesale mortgage lender call and tell me proudly that his company approves FHA loans a credit score as low as a 545.”

“I explained to him that when people with such low credit ratings get these loans and default, the government will have to raise my taxes to pay for any losses over and above what is in the MIP fund. I will not sign up to sell such loans because of how irresponsible it is on so many levels to the tax payers who are responsible with their money.”

These are the type of mortgage brokers that have ethics and should be praised in choosing their ethics over making a quick dollar. We should not blame this type of broker for the housing crisis and current foreclosure problem.

Moreover, these are the mortgage brokers we should trust when seeking a loan because they are doing their job properly and as a result, looking out for and protecting everyone: our collective assets, collective futures.

Watching and analyzing the housing industry for years, I have learned to tell the snake oil housing professionals from the ethical, morally responsible ones.

My advise is just look for the blunt speaker who doesn’t always tell you what you want to hear. Brokers like these will tell you the truth about the affordability of the home you want to purchase and they will not let you sign for a loan if you don’t truly understand the terms.

They can also rub people the wrong way because they tell people what they might not want to hear while speaking the truth without sugarcoating reality or leading you to believe you can purchase something that will only put you in a bad spot in the future.

Keep up the good work!
Mortgage brokers that refuse to sell loans that they know will get the economy and individuals in trouble are housing ethical gods. And yes, they did exist in pre-crisis. Housing professionals like these will bring back the housing market.

A Group Effort
Is all the responsibility to keep the housing industry strong on the mortgage brokers shoulders? Not at all. It is a group effort.

This was just one example of one link in a chain of people who picked ethics over greed. All of us need to play a part in improving housing market situation. Potential home buyers must not have bigger eyes than their wallets when looking to purchase a home.

Real estate agents must not let prospective buyers purchase a bigger house than they can afford, mortgage brokers must not sell loans that will have a high rate of defaulting, mortgage wholesalers must not push loans that people can easily default on.

Banks and government must work together to promote programs and strategies that encourage healthy and responsible spending.

What are your thoughts? Please comment below.

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