For some time now, criticism has been mounting against mortgage brokers who do not take the time to walk their customers step by step through the lending process. With a high percentage of Blacks and Hispanics who took part in subprime loan programs now facing mortgage payments they are not able to pay, some have even suggested that racism is the silent culprit. If you are a regular reader of this site, you will know that while I do agree with that claim on a small scale, the bigger issue is the gullible expectancy many individuals have that it is the role for brokers to explain every detail of the process. Like anybody else, the main job of a broker is to sell you a loan–period. If all you are concerned about is your monthly payment, that is all he/she is going to dwell on. The same applies if you are seeking financing for a car (read).
Christopher Cruise, a mortgage broker and loan officer trainer echos this same view in this article found on bankrate.com:
“I think it’s worried a lot of people in the mortgage business,” Cruise says. “We kind of hold our nose and close our eyes and originate these loans.” He says his students sometimes wonder aloud why the loans they are originating are legal.
“So long as these loans are legal, we’ll continue to sell them,” Cruise says. “Yeah, we do cringe. But so long as people qualify for the loans and they want them — we don’t even have an obligation to educate people on the risks of these loans, although some of us do. You still have the freedom to do things that are stupid in America. Unfortunately, many people are exercising that freedom with abandon.” (source)
With a few exceptions, the mortgage industry (like so many others) is filled with individuals who will take advantage of ANYBODY who is not interested (or not willing to invest the time) in understanding all the little details. To have the expectancy that “the system” is supposed to hand-hold us (the Black/Hispanic demographic) like little children through every major purchase is further proof that low expectations has become synonymous with our culture.
