Mortgage Brokers are shady.

NEW -> Contingent Buyer Assistance Program
Oh the stories I could tell. That was a pretty good article. Usually I pick through it and find numerous errors but in general they got it right. Especially the point where correspondent lenders do not have to disclose the YSP.

My only problem is "Despite problems, most industry experts say the answer is not draconian new regulations, but more disclosure." Yes more paperwork to an already tree killing amount of paper. I think it should be clearer and more concise disclosure not more and serious fines for not disclosing YSP clearly and properly. Higher licensing standards should be applied too. It is bad enough when you are guilty of securities fraud but when you have been convicted twice for felony drug possession as well you shouldn't be allowed near the industry let alone run a company in it. Yes that last sentence is very true.
 
Fraud wasn't "discovered." Subprime lenders knew of the problem, but preferred "see no evil hear no evil". New Century execs didn't care. It is a public company, public money, and they were reaping huge bonuses.
 
IIIrvine,

I blame the Mortgage Associations for not widely stress the penalty of comitting mortgage frauds.

Adults are no different than children; they need to be told over and over that mortgage frauds are criminal offense. Jail time and or monetary fines are real. Many of the LOs that I talked to had no clue anything could happen to them if they commit mortgage frauds. Many LOs are not registered (I do not fully understand this) with the Department of Real Estate. Their profiles and finger prints are NOT on-file with Department of Justice, like Real Estate agents are.
 
A much better way to put it; "you have really dumb people selling really important products to even dumber people". So it is like the blind leading the blind.
 
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