I was a portfolio lender and mortgage banker seller/servicer for 98% of my career Greg. So I think differently then those that earn all their income up front, where subsequent problems is the other guy's job/problem. Therefore, I think in terms of 'is this a good & collectable loan' vs how much commission can I earn on this loan. That's a major difference in the overall quality of what gets put on the books ... and ... what gets put on the books is what will haunt originators as the MBS's explode (as many of them have been doing the past few years, especially those laden with STATED & NoDOC products).
YA see Greg STATED & NoDOC loans make a big income for the originator NOT for the funding sources however. So all the front-end big commisison loaded personnel (LO's & AE's) all love them. In the long run, they're bad for the industry,
except in only a few very exceptional unusual borrower situations. So far the numbers have merely out-ran the problems ... that comes to an ugly stop.
As that last posted freely said,
he's always done fraudulent loans (pumping up income so people can qualify), so he could suck out a Big Commission. Unfortunately, we all know he's not alone ... that warped thinking is commonplace ---
I'm simply trying to SCREAM-Out about more ethical values. There's plenty of blame to go around, the industry will suffer for this.
