Industry News

Time to change how loan brokers are compensated

Best of the InmanWiki

Editor's note: Inman News will hold a contest each week asking readers to submit articles to the InmanWiki focused on a particular topic. The best entries will be featured the following week in Inman News. Last week's winner was Michael Hoskinson, a Realtor with Foundation Realty in Huntington Beach, Calif. The following article was his submission to the topic, "What do you think the ultimate result in your local market will be from the fallout in the subprime mortgage market?" Subprime Market Opinion As a real estate broker with over 20 years of experience, I wanted to weigh in on the current subprime debacle. In this last housing boom, lenders created loan products to meet consumer's hearty desires; they created a huge amount of equity but missed a vital point: they allowed consumers to buy a payment, not a house. Items like "stated income" and "hybrid ARMs" made an egregious amount of money for banks, and brokers but put people in places they should never have been allowed to go. Th...