My Fault or YOUR Fault?

I am a mortgage broker.

I'll wait a moment for the hissing and boos to die down before I continue...

I guess it's just NPR getting under my skin about me being responsible for the actions of an irresponsible adult. Doesn't the old lady taking out that loan that she can't afford have some responsibility for her own decisions?

I can look anyone in the eye and tell them that I was up front and warned them that they were gambling that the equity would last when the situation merited. They begged me for the loan that I knew would not benefit them in the long run.

I remember my parents 14% loan back when Jimmy Carter was president. The days of 4% three years ago had to be a short-lived phenomenon and it truly was.

This is the case in many situations across America. Unfortunately, there are also many situations where the loan originator promised the moon and closed with a cow pie. YOU know who you are, you told loan officers who are honest like me I was a "too high" because I was with your situation. Then you selected someone else and you closed with a totally jacked variable rate and high costs at the closing table. YOU were too lazy or ashamed to call me during your three day right of recision period and ask for my help. YOU are the geniuses I am writing to. Many of you are the same ones who again ran up debts beyond your ability to pay and are struggling.

Am I perfect? By far no. We all make mistakes. However I do have a 20 year fixed rate on my loan and I have always advocated shorter fixed loans to all my clients first.

Yeah, they could save the cash difference but I'll bet you dollars to doughnuts that they spend the money on eating out so don't get all puffy with me about the advantages of mortgage debt. I live in the real world. I advocate considering your retirement income situation when you are 35 and making sacrifices ahead so you won't be refinancing at 50 to a 40-year term. Sure you can invest the difference but most people won't/don't. Why not pay off that mortgage instead of retiring to wal-mart greeter status?

It's so easy to blame someone else. Let's remind everyone of the federally mandated 3 day right of recision for refinances (against the home ATM comment) and that realtors are complicit in the 2-year-arm high-rate closed sale situations.

Yet somehow the Loan Officer should be paying? Perhaps some should, but I take exception to that label.