Tripod of Trouble

I just came from a great California Association of Mortgage Brokers (CAMB) breakfast meeting, where the speaker was - Robert Manning, Ph.D.. Dr Manning spoke on serveral fronts including the changing American attitude toward debt, but of his comments really hit home.

Let's call it the tripod of trouble.

You have government laws and regulations that need to be fixed in order to help fix the mess we're in.

You have corporations sitting on a ton of bad loans underwritten with bad standards as well credit cards that were being marketed on the assumption of rising home values and free flowing credit.

You have consumers who are overextended and using credit cards to help manage living expenses, stagnant or dropping income levels, and individual debt levels at historic levels.

What does this spell? Trouble!

Now is the time to reinvent or die.

How to reinvent is the question that keeps coming up.

Here's a couple of thoughts-

Housing debt is typically the biggest asset/liability on a individual balance sheet. It typically is the biggest monthly payment.

When does fiduciary duty as a loan originator begin? Pre application, at application?

My perpsective - in the new market (After Freddie and Fannie) fidicuiary duty will take an more holistic overview - can this person REALLY repay the loan?

Is this person's net worth truly enhanced as a result of this decision?

What is the plan that you shared with this client?

How will you monitor this plan?

One way to answer-

GreenSherpa

Another way to answer-

Rudder

Reinvent or Die - now is the time