NYAMB and NAMB fight back: Brokers respond to Sen. Schumer's national op-ed attack in Wall Street JournalMortgagePress.comSchumer,brokers
On Aug. 9, Sen. Charles Schumer submitted an op-ed piece to
The Wall Street Journal titled, "New laws needed to curb
unscrupulous brokers." In the article, he took aim and fired blame
for the current housing market conditions directly at Mortgage
Brokers.
Members of the New York Association of Mortgage Brokers have met
with Schumer annually in Washington, D.C. at the National
Association of Mortgage Brokers Legislative & Regulatory
Conference to keep him informed of the efforts of groups such as
NYAMB and NAMB. The primary purpose of these meetings during NAMB's
Legislative & Regulatory Conference in D.C. is to stress the
importance of the role of the Mortgage Broker to the consumer in
the home-buying process. In addition, these meetings with elected
officials are used as mini-education sessions and platforms for
some of the current issues faced by the broker industry, including
the discussion of a national registry for all mortgage loan
originators—not just Mortgage Brokers. The point of this
registry would be to weed out the bad actors in the industry, as
well as to keep a level playing field within all realms of the loan
originating industry, thus not targeting any one sector of the
industry.
"For loan origination, if we really want to protect consumers
and unmask the bad actors who originate loans, we need to implement
a national registry that includes every originator, regardless of
whether they work for a bank, a broker, lender or wherever," said
NAMB President George Hanzimanolis, CRMS. "NAMB has lobbied for
such a registry for four years, and it's no surprise we're seeing
it included in many of the reforms being discussed today."
In late July, NAMB Executive Vice President Roy DeLoach, NYAMB
Legislative Committee Chair Doug Baum, NAMB President George
Hanzimanolis, NYAMB 2006-2007 President Gregory Krauza, NAMB
Lobbyist Andrew Lowenthal and NYAMB Lobbyist Glenn Riddell met with
Sen. Schumer in his Washington, D.C. office. The meeting was held
so that the mortgage industry reps could bring to the attention of
Sen. Schumer that his proposed legislation regarding borrower
protection strategies singled out Mortgage Brokers. The senator
then directed his aides to look into his proposed legislation to
ensure it included all loan originators.
Sen. Schumer has been well aware of the strides that Mortgage
Brokers have made to protect the consumer, while helping them
achieve the American dream of homeownership. It was with great
displeasure that Mortgage Brokers woke up on Aug. 9 to read a
national article printed in The Wall Street Journal, in
which Sen. Schumer singled out those Mortgage Brokers he had met
with and praised for years, blaming this one segment for the
current market conditions and rate of foreclosure.
"We were disappointed that, after meeting with Sen. Schumer less
than a week before, he continued to single out brokers in his
rhetoric," said Krauza. "We had expressed our concerns and felt he
understood the complexities of the market and our role."
NYAMB and NAMB jointly took action yet again, penning a rebuttal
to Sen. Schumer's scathing attack on the industry. Titled "Memo to
Schumer: Don't blame the brokers," the article ran on Aug. 23, and
in it, NYAMB and NAMB jointly reminded Sen. Schumer and the
American public that Mortgage Brokers are not the only ones who
originate loans. They pointed out that Sen. Schumer failed to
mention mortgage bankers and credit unions in his letter. NYAMB and
NAMB agreed with the senator on many points in his article, such as
that "there are some major issues that need to be addressed within
the housing market and that new rules and regulations are necessary
to restore confidence in the industry." But the brokers were
outraged that Sen. Schumer ignored these other groups and falsely
labeled Mortgage Brokers as not only the only group
originating loans, but as the only group responsible for
the burgeoning foreclosure epidemic that the nation is currently
experiencing. In the article, NYAMB and NAMB stated that "while
blaming the broker might make good headlines for the senator today,
it marginalizes the very people with the experience, knowledge and
ability to help consumers in the future—Mortgage
Brokers—without offering any real protections to consumers
and causing further damage to the housing market at a time when it
is hobbling."
"In a market where a correction has affected values and
borrowers' ability to refinance, there are always people out there
who want to point a finger or blame someone—and there's
plenty of blame to go around," said Hanzimanolis. "But we all know
it's not just loan officers and brokers who are to blame. We need
to look at the entire industry and each segment in the
industry."
NYAMB and NAMB both hold their members' interests, as well as
those of the American consumer population, at heart. In recent
statements made by the senator regarding the industry, Schumer has
referred to banks and lenders—not Mortgage Brokers. The
quick-thinking efforts of both NYAMB and NAMB have truly made a
difference.
"My disappointment has faded as I have recently read the
senator's comments that have included bank originations," said
Krauza. "I applaud his ability to process our information and
conclude there are multiple factors in the current liquidity
crisis."
Though this might seem a small victory—conveying a message
directly to a U.S. senator enough to slightly change his
vocabulary—it truly is a much larger victory in the end. This
goes to show NYAMB and NAMB members just what their associations
can—and will—do for them. The strength of an
association's voice is much louder than the strength of one, as
proven recently by NYAMB and NAMB.
