Posted by garnet71 on February 7, 2009, at 18:24:38
In reply to Re: Economics 101, posted by fayeroe on December 12, 2008, at 16:32:09
Ex mortgage broker and ex loan officer here..it's a lot more complicated than that. Part of it is the nature of the field.
Appraisals are inflated much of the time - if an appraiser does not make the appraised value enough to make the loan work, they will get no business.
Loan officers work on commission - the higher the interest rate and fees charged to the borrower, the more they will make. Especially the 2 year adjustables - they pay the highest yield to the broker/loan officer.
Needless to say, I got out of that business as fast as I could--after the transition from loan officer to mortage broker!! Not just one company -I had worked for 4 and met mortgage brokers/loan officers who had also worked for "4". It's a corrupt business. Unethical. Although the job can pay 6 figures. It's not worth the guilt!!
poster:garnet71
thread:868220
URL: http://www.dr-bob.org/babble/poli/20081212/msgs/878801.html