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Mortgage Mayhem!
For many people, getting a mortgage is as normal and unavoidable as eating. Mortgages and food both facilitate important activities, so unless you’re extremely wealthy or capable of dormancy, you probably have or plan to get a mortgage someday and it’s a fair guess that you also eat on at least somewhat of a regular basis. Changes in the housing market set off a series of events that embroiled the mundane mortgage in controversy. One could barely read, listen, watch or web surf without coming across stories of predatory lending, unscrupulous brokers, hapless victims, evil adjustable rates, embellishment of assets and countless other depictions of diabolical deeds in the lending industry. The public took notice and so did lawmakers at state and federal levels. What does the mortgage industry itself have to say? Conscientious loan officers are as appalled as the general public at true abuses of financial information and tools. It’s gut-wrenching to see what a portion of an industry has wrought upon the whole. One of the biggest reasons the mortgage industry finds itself in its current uncomfortable position is patchwork requirements and regulation of mortgage standards. In response, the industry itself has begun to self-police and mobilize toward positive change. Many loan officers have moved toward a higher level of education and voluntary professional certification through an organization called The CMPS Institute. To take part, financial professionals must complete training and pass examinations to earn the designation of Certified Mortgage Planning Specialist. The CMPS serves the public much as the Better Business Bureau does by providing a code of ethics, compliance standards, complaint process and consequences for members who are found to have committed violations of its standards. The Ann Arbor, Michigan-based institute also teaches mortgage professionals to integrate financial planning and other strategic concepts to better serve their customers long term. CMPS membership must be maintained and renewed annually. The full implications of the so-called “subprime meltdown” and subsequent wrath of public outrage and legislative action will likely not become clear for some time. So far, many mortgage programs have been eliminated and rendered illegal in some states. Some consumers will be saved from themselves and lenders just chasing a buck; however, investors and other more sophisticated borrowers are losing valuable tools that help them fuel the housing market in a useful and positive way. At local and personal customer relations levels, concerned mortgage professionals have flocked to The CMPS Institute to differentiate themselves from uneducated, misguided and unethical mortgage brokers. |
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