Yesterday I received a call from the well-meaning, necessarily evil and devilishly efficient compliance Nazis at company headquarters. (Said company's name will not be mentioned in this post as inducing apoplexy in anyone remotely connected with your paycheck is generally not considered a good idea.) It seemed that several potentially serious loan originator violations had come to their attention (inadvertently through my attempts to comply with other related regulations) including the following:
1 - My professional accomplishments / credentials in the CPA field were showing in my emails ("CPA", "Masters Taxation")
2 - My Facebook account (entirely personal) referenced my place of employment without proper authorization / sanctification/ friend-ification by said employer
3 - My LinkedIn account was guilty of similar offences
4 - My ActiveRain account...
I think you get the point - but it is too important to simply imply and is this - the practical essence of many "consumer protection" loan originator regulations is a stifling obsession with trifling bureaucratic inanities. Not surprisingly, this is having a tremendously deleterious effect on the quality and quantity of mortgage professionals available to attend to the mortgage needs of the consumers the regs were ostensibly intended to serve.
Already, at many of the larger banks, it is becoming increasingly difficult to find anyone above the pay-grade of a teller handling residential loan requests. Mortgage brokers completely bypassed the endangered species list, did not collect $200 and went straight to extinction. (We're all mortgage bankers now.) Realtors are probably protected from such debilitating regulations due to the excellent job you have done in marshalling effective representation in D.C. But this begs the question, when will the NAR put the full force of their lobbying muscle into the effort to preserve competition and professionalism in the mortgage industry? I realize that this begs another (more embarrassing) question - to whit - Why don't the loan originators have their own lobbyist?. It's a fair question, but, it is nothing to the point at hand. Realtors and loan originators are in a co-dependent relationship and are clearly both served by the survival of a genuinely free and competitive lending marketplace.
Notwithstanding the comments above, the aforementioned compliance Nazis (who, I am sure, bathe daily and love their mothers) require me to state that opinions expressed in this blog post are entirely my own and are not intended to represent the views of Guild Mortgage Company.