I understand that there are times that the government needs to regulate an industry. I also understand that the mortgage industry has been riddled with issues but the latest "blueprint" for regulatory changes places the blame on mortgage brokers and does not look to: investor greed, credit rating agency mistakes, Wall Street GREED, consumer negligence, Bond fund propagation of exotic mortgage products, not to mention that bank originators are encouraged (pushed) to sell the product that will make the bank the most money.
I am a trustworthy mortgage originator, I follow the rules, I care about my clients and I rely on my relationships to further my business. I don't think any originator needs to make 4 points on a loan, but I also think an originator making that kind of money will not stay in business very long. If the government would actually make all mortgage originators comply to the same rules and not have two sets for mortgage brokers and mortgage bankers, that would be a huge step in the right direction. Second step, utilize the current rules that protect consumers and don't make new ones that just make consumers pay more in the long run.
On a rate note, mortgage backed securities have hit another ceiling of resistance and with the Treasury issuing another round of supply next week, it would be prudent to lock now if you are currently in contract.
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