Mortgage Mess-Blame Game

Lenders blaming brokers. Brokers pointing back at lenders. Consumers upset at lenders and brokers. All in all, no one was complaining when money was being made including Asset Managers, Lenders, Brokers to Consumers. Politicians are taking congressional action now but the bottom line is everyone should have stopped and taken a breathe. I agree that professionals should be communicating with their clients and providing them long-term professional advice. However, many "professionals" spurted up during the creation of these ARM loans so they themselves didn't know the benefits of a traditional 30 year fixed vs the ARM or let alone the negative affects of no doc, stated income and full doc loans. Lenders came up with these products and guidelines because financing was so cheap. Then came a market flooded with brokers, wholesale lenders and direct lenders. Consumers then flooded the market attempting to flip homes and get rich quick. Some made it out with a nice sum of money and the remaining left with bad credit and no home. It's a tough situation to grasp but it's a reality. High risk gives high rewards if you make it to that point, however. I do feel for consumers because they're the little people that will take much longer to recover then the banks. No one could have predicted this downfall in the market, not even Alan Greenspan. Sometimes it helps just to be the "conservative" consumer as half of the world is and they're fine. Professionals should take time in their day to lend a hand by listening or giving consumers options because the guy that sold them "that" loan is long gone and it's up to us "long timers" to give back to the community with knowledge and options that banks are not. Fortunately, none of my clients are in this situation but the least I can do is help with the knowledge that I have.