'Bigger fish' vs. 'the little guy'

Re: 'Mortgage brokers sue to block RESPA' (Dec. 22)

Dear Editor:

Having firsthand knowledge of lenders I would have to side with the mortgage brokers on this one.

It has long been assumed that banks lend their own money and later possibly sell some of their loans to free up more of their own money for lending.

This is not even close. Most, if not all, of the banks I am associated with actually work the same as a mortgage broker. They get a client, fill out a loan application, and then the bank loan officer sends the loan to a lender for approval prior to close.

It's the same with mortgage brokers. It is amazing to me that a mortgage broker needs to be licensed, have continuing education, pay fees, etc., and bank loan officers apparently just need to fog a mirror. It looks to me to be the same type of system that is credited for creating the mess we are currently in.

It is also clear to me that the governing bodies put in place to oversee our industry seem to bypass the bigger fish and blame all of the conditions on the little guy.

That, in turn, focuses the public's attention on the little guy while the problem continues. If, in fact, the banks did not use yield-spread premiums for their own profit, then requiring them to disclose this should not be an issue.

Jeff Driessen
Owner
Montana Land and Real Estate
Helena, Mont.

***

What's your opinion? Leave your comments below or send a letter to the editor.

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.