There’s a lot of fingers being pointed in the current mortgage process. It’s important that we take a look at the whole situation.

Let’s start with the brokers. Could brokers have been more responsible in how they sold loans to their borrowers? Could they have taken better care to know more about the borrower’s ability to pay? Could they have done more about getting the correct documentation instead of worrying about shortcuts? You bet they could have.

Next, let’s look at the lenders. Could they have been more stringent in their underwriting of the files and their due dilligence? Could the AE’s have backed off on exceptions to policy and guidelines? You bet they could have. What about the investors who bought the loans and created programs? Could they have been more careful on what they bought? Or could they have offered less aggressive products? Could they have said "no" to some of the crazy product ideas of the last several years? You bet they could have. So who do we really need to point fingers at? I believe it’s the whole industry.

Here’s how it works: One company comes up with a creative product that creates a real niche in the marketplace, a real need for consumers. When the product begins to catch on and word begins to spread, other companies start scrambling to sell the product or create their own to offer. Through the creation process, more enhancements are made to the product line thereby creating more demand. In the excitement and hustle of the new niche created by the product, we forgot to look at what the long-term effects of the product would be. Until, that is, it’s too late. We were warned, but we didn’t heed those warnings.The market was too lucrative and we were all rolling in the profits.

The current crisis we have now will prove to be really good for our industry. There will be some negative consequences but for the most part, the outcome will be good. Brokers won’t go out of business because they’re too passionate about what they do and have too big a voice for the consumer.

In 2003 I was heavily involved in the Georgia Fair Lending Act which was a precursor to House Bill HR 3915, whether we realize it or not. We were worried that our industry was going to go out of business. While we did cease doing business in the state for a few months, we were too loud, too strong and too representative of the consumer to let that continue. The law was changed and business continued. And it was good for us. We really got to focus on what was wrong with the industry and made positive changes.

And that’s exactly what’s happening with HR 3915. Yes, it’s scary but it will make things better. For those of us who have made this business our life we will see a lot of the problem people in the business go away. We’ll be clean, lean and mean and ready to start building this great business again. But let’s not rest on our laurels. Our call to action should be to always keep our eyes open. We’re not a get rich quick scheme. We are a legitimate business that’s good for the economy and good for the consumer. Let’s go out and prove it. I believe in you!