(Originally published February 21, 2010.)
On January 26, 2010, The FHA stepped up enforcement actions, essentially shutting down six mortgage lenders by immediately and permanently revoking their licenses to issue FHA loans. Long Island lender, TopDot Mortgage was among those terminated in the FHA’s crackdown. Another local, Lend America, was shut down in December.
“FHA takes its oversight role very seriously and will move swiftly and decisively to protect borrowers from unscrupulous lenders,” (emphasis added by me) said FHA Commissioner David Stevens. “Any lender who refuses to comply with FHA requirements will simply no longer enjoy the privilege of participating in FHA programs.”
Trust me. There will be more.
The mortgage industry has changed. Yet banks and lenders still employ scores of “mortgage salespeople,” loaded into boiler-room phone centers, talking to prospective borrowers who call in from around the country. In these environments, even the highest level of government regulation will not prevent abuses and violations.
- Mortgage salespeople are order-takers, not trusted advisors.
- Mortgage salespeople don’t have the financial background to properly advise their borrowers.
- Many mortgage salespeople don’t care whether the loan is appropriate for their borrower. They see a commission check, not a long-term client.
- Mortgage salespeople have been known to say and do anything in order to make bad loans close and protect their commission. (Who’s protecting YOU?)
FHA Commissioner David Stevens said that TopDot Mortgage “demonstrated a pattern of utter disregard for how we do business and its behavior not only put the FHA …at risk, but placed their own customers at greater risk of foreclosure.”
Your mortgage and your home are likely the most expensive and complex investments in your life. Why would you entrust this to someone merely selling a mortgage? Why would you seek help from anyone less than The Best Mortgage Professional?
And guess what? The rates and fees you’ll receive from a competent and qualified Mortgage Planner are probably the same as if you used one of those other lenders. The big difference? Your loan will actually CLOSE.
In this crazy lending environment, it’s critical that you work with the right people who know what they’re doing, who provide accurate advice and guidance, and who get the job done. Working together, we can ensure that your transaction goes smoothly and stress-free.
Since 1992, Warren Goldberg has helped thousands of clients own their homes, refinance their mortgages, restructure their debts, and invest in real estate. Warren is known for his wide knowledge of mortgage products and wealth-creation strategies.