The Witch Hunt Has Begun---Will They Burn Our Freedom At The Stake?

Financing, Hard Money Lenders, Private Money
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In the state that has the richest heritage of witchlore…

On July 23rd, the Massachusetts Senate passed Bill No. 2296 (http://www.mass.gov/legis/bills/senate/185/st02/st02296.htm) seriously handicapping the use of adjustable rate mortgages in the Commonwealth.

Rather then get into the dirty details (I’ll let you all read for yourself), I would like to start a discussion on the big picture ramifications—here goes:

  • As a real estate investor and/or homeowner, how do you feel about Uncle Sam telling you what mortgage programs you can or can not use?
  • If similar legislation was inacted in the state in which you do business, how would this effect your business & profits?
  • As a mortgage professional, how do you think this new governance will effect your business (assuming that this bill achieves national acceptance)?
  • Do you feel the government has overstepped the boundaries of its responsibilities to its voting public or do you feel that more laws of this nature should be passed?

Make no bones about it, this is being watched by other legislators (maybe from your state) and with the cumulative issues that exist in the real estate market/industry today (not to mention all the bashing in the media and growing public disdain), this could just take on a life of its own and spread like wild fire (to other state platforms)…

Some of you might be reading this and say, “Scott’s a lender and this is a self serving crusade from a self-important blowhard who sits at a table for one…”, I say to those people that this isn’t about me, the impact it’s going to have on my business or whether or not I think it is appropriate or overkill, etc., you are missing the bigger picture.

This is really about you (as both homeowners and real estate investors), your freedom and in a macro-prospective, your constitutional rights…

Do you care? If so, then “We the People” need to “nip it in the bud”.

Anybody that might be opposed to this form of big brother intervention recently passed (regardless if you do business and or live in Massachusetts) can voice their opinion in the following ways:

As I see it both as a lending professional & homeowner, we are at a cross-roads—we can either “Speak up” or “forever hold our peace” (and potentially surrender a piece of our freedom and rights of choice).

Getting off the soap box now and opening the floor for discussion and rebuttal…

Regards,

Scott Miller

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"Scott's a lender and this is a self serving crusade from a self-important blowhard who sits at a table for one....",

I usually think that…just kidding. I have to say that I have got your back on this one.

I am with Scott. It is about time for Big Brother to keep his nose out of the American People’s business. It is time to stop creating rules to protect the few when it hurts the many. Maybe if we spent more time educating and less time whining we could accomplish a lot more.

It IS time for “We The People” to take back control of our government. Make our elected officials be responsible for our interests, NOT the special interests!

:beer

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I walked into that one…
:rolleyes

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Scott,

I respectfully disagree with your assessment of this bill. The very minor changes will have little effect on the lender and provide the consumer with a better understanding of their mortgage loan. Will you explain to us how this is a bad thing? I’m much more concerned about the use of tax payor dollars to subsidize the employer housing fund for low to moderate income employees. The government is matching $1 for every $2 employer contribution!!

Let me expose the real truth here. If you go on to read the entire bill, which I have, the teeth in the bill deals with increased governance of the mortgage industry. A bill that would bring the state more in line with financial and educational requirements as they relate to licensing mortgage brokers. So, Scott,… let’s talk about what’s really bothering you.

As for the state of affairs in the Commonwealth, congrats for taking responsibility for your actions.

keep smiling,
-H

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You do realize that mortgage brokers are already held to the highest form of disclosure/transparency in the industry—i.e. mortgage bankers, S&L, etc. aren’t require to disclose YSP, but a broker is.

The subsidies aren’t coming from the government, they will come from the wallets of other tax payers and employers (which in turn will come from the employee in the way of reduced income potential and benefits)—IMHO, there are a lot of social services that would benefit from a socialistic approach, but real estate is not one of them (section 8 housing subsidies are sufficient in this regard).

You don’t know me or how I do business, but if you bothered to review my website or consult with me, you would be aware that I’m a open book/flat fee mortgage broker (also known as a upfront mortgage broker)—disclosure is my unique selling proposition & competitive advantage—simply put, I earn a “fair day’s pay for a fair day’s work” by exposing the tricks and scams of others involved in the lending industry and by delivering the highest possible value as it pertains to lending.

Let me expose the real truth about your post—assumptive & insulting as it pertains to my alleged hidden agenda and deeply rooted in ignorance as to the cause and effect ramifications—I don’t have an issue with anything but the freedom of choice being challenged in a dictatorial manner (I don’t fancy the increased taxes I’ll have to pay either).

P.S. Given you are so adept at reading between the lines, you probably already know that this was nothing more then a power play put forth by the MBA (Mortgage Banker’s Association) lobby…Mortgage bankers have long wanted the broker faction out of the industry (maybe it’s because the wholesale business model delivers more consumer value or because brokers originate more then 70% of all loans in North America). Why? More profits for them (due to decreased competition) and maintaining status quo (hidden profit margins that aren’t required to be disclosed).
P.P.S. I’m going to pretend that elections aren’t around the corner and this couldn’t have anything to do with tapping into public sympathy for the growing national foreclosure issue and that making a unworthy scapegoat of mortgage brokers won’t translate into votes at the voting booth.

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Don’t feel alone. Illinois is also passing similar laws to the one you mention in Mass.

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Hmmmm, let’s see - Massachusetts and Illinois

http://www-personal.umich.edu/~mejn/election/

Yup, you guessed it - Blue and Blue. In “blue states” you are not smart enought o control your own actions, you need the government to do that for you!

Keith

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and Minnesota is right behind with something in the works—as predicted, this will take on a national platform without voter intervention.

Housebroken, I noticed that you signed off with a “H”, you wouldn’t be Hillary (as in Rodham Clinton)? This is exactly the type of nonsense she would praise, support and lobby into legislation.

Believe it or not, this will have no effect on my business—but it could effect yours as a real estate investor.

Regards,

Scott Miller

9

Anybody care to weigh in on the questions I asked, namely:

  • As a real estate investor and/or homeowner, how do you feel about Uncle Sam telling you what mortgage programs you can or can not use?
  • If similar legislation was inacted in the state in which you do business, how would this effect your business & profits?
  • As a mortgage professional, how do you think this new governance will effect your business (assuming that this bill achieves national acceptance)?
  • Do you feel the government has overstepped the boundaries of its responsibilities to its voting public or do you feel that more laws of this nature should be passed?

Regards,

Scott Miller