OpinionMortgage

How should today’s mortgage brokers respond to ‘The Big Short?’

Take it as an opportunity tell consumers about how the industry has evolved
  • The mortgage industry is taking a lot of criticism lately, but much of it is fair.
  • Mortgage brokers shouldn't be defensive; it's more productive to use this criticism to start a conversation about what's changed since 2008.
  • This conversation also presents the opportunity to be vigilant about preventing a return of the kinds of abuses that crashed the market in 2008.

"The Big Short" might not have taken the Academy Award for best picture (though Best Adapted Screenplay is nothing to scoff at), but it's still a film mortgage brokers have to reckon with. The movie's portrayal of malfeasance on a massive scale within the U.S. mortgage market has brought the drama of the 2008 crisis right back to the pages of newspapers and magazines around the country. Even for someone familiar with the industry and the history of the crisis, it would be difficult to see the film and not wonder how more firms didn’t go under. Considering the scale of the crisis, surprisingly few firms went bankrupt (if you’re wondering why more licenses weren’t lost, it might be helpful to review this mortgage broker bond guide). Following the economic recovery -- for those who would call it that -- and the Oscar hype, how should mortgage brokers feel about this film and its cultural impact? Mortgage broker portrayals in 'The Big Short' Even as recently as Febr...