“Too much light makes us blind — not enlightened.”
You are probably reading this the day after the celebration of the American Independence Day, which we usually associate with parties and fireworks. Bright sparks fill the dark sky and often it is a very spectacular scene. But if not for a dark sky, no amount of light would have the desired effect. During the Creation of the World in the Torah, God said:
“Let there be light” and there was light. God saw the light was good, and God separated between the light and the darkness. –Genesis 1:3-4
Every photographer knows that too much light can “kill the image”. Therefore, the best time to shoot photos is in the morning or in the afternoon when the sun is not so bright. To have an attractive image, there has to be a good balance between light and darkness.
Unfortunately, those who created regulations to control the mortgage loan origination process did not study photography. Those who created the Consumer Financial Protection Bureau, which resulted from the Dodd-Frank act, have no idea that too many disclosures in the environment, that is already flooded with information (light) will “kill” any information about the possible pitfalls that may result when getting a mortgage.
After the stressful process of finding real estate property and ensuring qualification for a mortgage, the borrower receives about 114 pages of the government’s regulator mandated disclosures online. Since the appraisal report cannot be ordered until these documents are signed and forwarded back, no one in their right mind will read any of those disclosures. So who needs them? And whom is the government trying to protect?
Meanwhile, our small mortgage bank hired 20 employees, headed by an attorney, whose job it is to ensure that the disclosure process is followed exactly as prescribed. Before the change, the bank’s underwriters could finish 5 loan applications a day, now only 1 ½. In the past, our processors could process at least 10 loans a month, but now with the added huge stress from the confusing paperwork—only 5.Who do you think is paying for the increase in costs of getting a mortgage? Ask yourself, do you need all this “financial protection”?
I love America. I love the Mortgage Business. I love my clients. I even like that more people are employed, but I do not like how regulators, who did not read “The Mortgage Game: The 5 C’s and How to Connect Them”, are telling all of us how to run the mortgage business.
P.S.
I like to photograph images with light as the subject. The photographs in this newsletter are part of my large collection. I hope you will soon be able to see more of my photo work, since I am planning to have a show.
P.P.S
The interest rates started to inch down. Do not wait until they get lower. Start the paperwork now.
Do not keep me as a secret.
SMILE AND PLEASE SHARE IT WITH A FRIEND
Best Wishes,