1. Over the past 5 years or so people that worked at mortgage companies were making really good money doing their jobs that required very little skill. They were there to sell loans.
2. The goal of the mortgage company is to do loans, not to inform their clients if what they are doing is financially smart. This happened because nobody informed their loan consultants if what they were doing for their client is something that they would want somebody else to do to them.
3. Many loan officers were telling people supposedly great advice but would not even do what they were telling people to do. Many loan officers were in the same situations there clients were in. In debt up to their head because they were spending their huge commission checks on crap instead of saving.
4. There was no real training going on at mortgage companies. Since mortgage companies only do mortgages and not checking and savings accounts they were taught how to sell. This is not a bad thing because every business needs good sales people. The problem is that these loan officers became selling machines and did not even think if what they were doing was really helping their clients.
5. A great example of this is many mortgage bankers would sell their clients into rolling all of their debts into a new home loan saving them money on their monthly payments. In which what should have been said is “why don’t you get rid of that Cadillac Escalade and get a Ford Focus which will save you $600 a month just on your car payments and about $300 a month in gas.” It was not the role of the mortgage banker to tell people how to live their lives just give them solutions on how to keep their current life style which they could not afford going.
6. With so much quick money to be made mortgage bankers worked their butts off trying to make as many sales as they could. Doing mortgages is not a hard job but a demanding one. Many mortgage bankers or brokers worked 13 hour days ruining their own social lives.
7. Many mortgage brokers and bankers were young and have never been taught any good financial responsibility themselves so all that is being passed on to them is that they need to make a sale or lose their job. Nobody wants to get fired so they kept on pushing for any sale.
8. Nothing was ever taught to mortgage bankers that hat they were doing was going to affect them because they were making money. Little did they know that they were giving bad advice to what could literally be their neighbors.
9. Many mortgage bankers bought houses over the past 3 years and if they ever took a Economics course of Finance class outside of the doors of their mortgage company they would have seen the mortgage industry falling down on them and that home prices were about to start dropping.
10. Many mortgage bankers were taught that they should treat their clients like an annuity. That they should be trying to refinance their clients as many times as they could which would continue to bring larger commission checks. This is not that bad but its supposed to be a 30 year loan which means do it right once and forget it. Provide your clients with good service and live off of referrals instead of selling clients into new loans that save them $25 a month in their bills in which they could just not go out one night a month and save that money.