The winds of change are blowing. Consumers have no idea what is happening. These winds of change are about to bring a national disaster to the mortgage industry. The end result of the swinging of the pendulum in this direction will be reduced choices for consumers. When consumers have fewer choices, their cost goes up. That is what is happening right now.

The wake of the housing meltdown resulted in an epidemic of "over legislation." States rushed in to regulate the local mortgage economy of these out of control home lenders. Then, once that piece of legislation was in place, the Federal Government, under the guise of the Dodd-Frank Act, came in to regulate how the person who originates your loan gets paid.

On the surface this is a great idea. Why should you have to worry about whether or not you are getting the best deal. In fact, for whatever reason, everyone who calls a loan originator has this "implied trust" belief that the person they are talking to actually knows what they are doing and has thier best interest at heart. One of the reasons for this law was an erroneous belief that the person you are working with might "steer" you to a program that allowed them to make more money vs. what is best for you as a customer/client. Unfortunately this did occur but moral obligation, fairness, competition, and a myriad of other events all contributed to muting what many now perceive to be the problem in the housing market. It is much deeper than the originator's fault. Wall Street, Major Banks, Small Banks, the US Government, the Sponsored Enterprises, the customers and the sales people all have culpability in this mess that is yet to unwind.

Everyone played a role but the end result is that the lobbyists and representatives used this momentum to get our US Government to create the Consumer Protection Agency. Of course, we are incapable of protecting ourselves! They laid out a grand plan to regulate the compensation of the person who originates your loan. I'm only covering this part but they also laid out limits on your financial advisors, your insurance agent, your banker, and everyone who you might consult for the purpose of getting advice that is best for you.

It all sounds so great! These people will no longer be able to take advantage of your naivete or ignorance. For once, the playing field is level and you can pick up the phone and trust the advice you are getting no matter who you speak to. Not so fast!

The big banks (do I really need to tell you who they are) all are using this as an opportunity). This is their chance to put their nemesis out of business. The "beast" they created and work with every day is now going to be eliminated by their opportune moment. They are also thanking their "lucky stars" that because of this, they can raise the price of consumer credit, lower their wage costs (has anyone noticed that this great job market that we are being told we have today is resulting in most people having to work for less money than ever before) and ultimately grow their capitalization through increased profits from the very business that everyone blames for today's economic issues?

The banks used to keep themselves "honest" by offering to work with brokers and other lower level bankers so that they could grow their mortgage business without having to take on "brick and mortar." A discount price was offered to broker and consumer in exchange for not having to pay electric, salaries, heat, benefits, etc. They took that closed loan, let someone else assume the risk of overhead and for a small piece of the pie, profited greatly. Now, that person is gone and due to decreased competition, the cost to you, the consumer, is going to go up. The mortgage monopoly begins on April 1.

The nameless "too big to fails" are licking their chops at the opportunity. Do you think they had any involvement in this? Do you think they played a role in being able to potentially report profits greater than Exxon/Mobile for a quarter (Exxon/Mobile has made over $10 billion in one 3 month period on a semi-regular basis).

Fortunately for the consumer, there is a way to get around having to deal with some company who may have their operations center in a place like Jacksonville, FL. A way to avoid having to be treated like a sheep being led to slaughter by some banker wearing a blue shirt or having a logo resembling an American Flag or having a call center 1000 miles away with an employee who tells you his name is Michael but cannot pronounce it correctly or maybe they still have the lion as their mascot but ownership moved out of this country not too long ago, etc...

What is the way? A lender who shares the model but is looking to gain market share and has the ability to work with FHLMC (Freddie Mac), GNMA, and other Investment Banks who want to do their best to keep these "captains of industry" honest. That is our company! Thanks to the current state, our rates are always lower. Thanks to the way the future is shaping up, our rates will always be better. Hopefully the veil of consumer protection will be lifted and the consumer will again be protected by the "free markets" but until then, perhaps Dick Portillio needs to worry about the government telling him what he can charge for a burger because it is in the best interest of everyone if Burger King, McDonald's or Wendy's set the price for everyone who is hungry.

Please review my web site: www.ILmortgageprofessional.com and you will be able to get the best rate and service from someone who actually understands the marketplace and how to assist you in avoiding the confustion.

Thank you,

Richard Glover