Industry News

Mortgage brokers call for study of foreclosures

Anxiety mounts as suitability standards gain momentum

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Feeling the icy wind of stronger regulation on their necks and fearing the worst from agitated regulators bent on layering on even more protections for consumers, mortgage brokers are calling for what they hope will be pre-emptive action in the form of an independent government inquiry into the causal factors of the rising foreclosures taking place across the country. "Before you rush to the judgment that brokers are placing consumers in bad loans and before we impose 'suitability' standards, we have to know the cause of problem," insists longtime south Florida broker and outspoken industry defender Joseph Falk. He suggests the results of a study proposed by the National Association of Mortgage Brokers would show that among other factors for the rise in foreclosures has been a raft of new and difficult-to-understand mortgage products coming from lenders -- supported by the investor community -- which have not been properly explained. "The rapid rise of these products is a major part...