Weasels Guarding the Chicken Coop?

Posted by: Roberta Murphy on September 4th, 2008

We have close friends who have moved in and out of real estate investments very profitably over the past few years—and it was not unusual for them to be holding several properties at once. Good friends they are, but they never took our advice about mortgage financing.

Instead, they always used some loan hack who never returned phone calls, was late on all commitments, but somehow managed to get the loan funded—several days late. According to our friends, he could “get any loan funded.” And he did.

This hack has relocated from the Los Angeles area to San Diego and is now one of those non-responsive real estate phantoms who list foreclosures.

It’s deja vu all over again.

It absolutely baffles me that the very folk who helped create this mess are now being rewarded by the lenders they duped. I am amazed at the number of listing agents who are also former loan brokers and wonder how this came to be.

And like Brian Brady and other concerned real estate professionals, I believe that separate licensing should be required of mortgage originators and real estate agents—and that banks and lenders should be vetting their foreclosure representatives more closely.

Far too often, in my opinion, these foreclosure listings are being placed with those who helped put the real estate industry into the tailspin it is today.

More and more, I believe our industry needs to tighten licensing requirements—and offer stiffer penalties for those who knowingly place clients in harm’s way. Consider the licensing requirements for selling stocks and bonds—and the SEC penalties given for misrepresentation.

Does real estate, the most significant investment in most people’s lives, deserve any less-qualified representation?

I think not.

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Comments

2 Comments on “Weasels Guarding the Chicken Coop?”

Austin Real Estate Guide

Yeah. I think tightening licensing requirement would do a lot more for realtors reputations than the millions NAR spends on “image” campaigns.

Gena Riede

Roberta, just another tail spin in the foreclosure mess. With banks using poor judgment, unscrupulous lenders acting as agents in real estate, Internet marketing people getting their real estate licenses…we can expect even more problems.

I thoroughly agree that a separate license should be required and a license should be required of anyone dealing with loans. So many people think that the people at the banks actually have a license and they don’t. Licensing should be required and in my opinion dealing with loans and real estate at the same time is a conflict of interest and should also not be tolerated.

Great thought provoking article.

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