Ready to be a MLO??

If so lets talk turkey…

We can and should start with some mortgage basics but lets discuss some recent history on loans and the crash of 2008.

The biggest area of opportunity and complicated area is the regulatory side of things. So buckle up buttercups and follow me :)

Lets imagine a world where you can go and make the usually the largest purchase of your life and you can give the lender a guessimate to your income or a educated guess? How nice would that be???? How nice to not have any oversight??

Welp at one point in time that was the norm…but what had happened was the housing crisis of 2008..

Now lets move forward to some good ol legistation aka checks and balances aka lets not crash the largest economy in the world…

A whole new world of lending was needed and lets dive but not to deep into the changes

The Dodd-Frank Wall Street Reform

• Improve accountability: Hold Wall Street accountable and end bailouts
• Protect consumers: Protect consumers from abusive financial practices
• Promote financial stability: Create a Financial Stability Oversight Council to identify and mitigate risks to the financial system
• Separate trading from banking: Separate proprietary trading from banking
• Create new regulations: Create new regulations to oversee the swaps market and derivatives market
• Empower the FDIC: Empower the FDIC to seize “too big to fail” firms

Consumer Protection Act

Consumer protection laws are a set of rules that protect consumers from unfair business practices. These laws apply to many types of transactions, including the sale of goods and services, and the lending of money.

Purpose Prevent deceptive advertising, Stop unfair debt collection, Protect against predatory lending, Prevent scams, and Ensure product safety

The Emergency Economic Stabilization Act (EESA)

Also known as the “bank bailout of 2008” or the “Wall Street bailout”.

Purpose: Prevent the collapse of the U.S. financial system, Restore liquidity to credit markets, and Protect taxpayers.