Reverse Mortgages

Reverse Mortgages, Salem Witch Hunts, McCarthy Hearings and the CFPB

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What do they all have in common?

  1. The Salem Witch Trials were a series of prosecutions of people accused of witchcraft.  This happened in colonial Massachusetts between February 1692 and May of that same year…mccarthy
  2. In 1947, Joseph McCarthyand the UnAmerican Activities Committee held nine days of hearings.  These hearings alleged communist propaganda and influence in the Hollywood motion picture industry.cfpb-reverse-mortgages
  3. In July 2010, Congress passed the  Wall Street Reform and Consumer Protection Act. President Obama signed it. The act created the Consumer Financial Protection Bureau. The CFPB consolidates most Federal consumer financial protection authority in one place.

Answers:

  1. All three resulted from hysteria within the general public. They followed some false concept that there was a clear and present danger to our way of life.
  2. All were the opportunity to gain power and prestige by a few shameless individuals.  The flames of fear associated with bad things proved too tempting to not take advantage of.

Pimps claiming to be righteous “Do-Gooders” pretend to protect us from “Evil-Doers.” 

(Can you believe they actually use terms like that?)

Except for the the CFBP, (which hasn’t run its course yet but will…) all were all exposed in good time.

The general public always comes to its senses, but not until they “burn a few witches at the stake first…”

The government made the CFPB yet another watchdog agency to regulate  financial services. 

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The mission was to “protect” the general public. 

 The “evil” financial institutions (including banks) will take advantage of us without them, right?

 Two elected officials helped damage our banking structure. They decided that they should beat the demands for their heads on a stick by claiming to be our protectors.

Out came the widest, most costly smokescreen in the history of this country.  The CFBB was born of Dodd-Frank act.

What we need to look at right now is how the CFPB has damaged our financial institutions.

When we create a new bureaucracy it’s no small deal. 

In fact since its creation in 2012 the CFPB has grown to over 1500 witch hunters.

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1,500 people are looking for witches? 

They’ll find witches,  even if they don’t exist.  

In the 1600’s innocent people lived in fear of the witch hunters.  If you were under suspicion,  that made you guilty of crimes that didn’t actually exist.

In the 1950’s people shunned lifelong friends to avoid being a conspirator by association.  Today The CFPB has the mortgage banking industry in constant fear that it will turn its gun sights at them. 

Bankers are afraid of accusations of horrible acts.  The public makes assumptions based on a press release that they are under investigation. 

This is what the Senate had to say about the CFPB:

CFPB: Unaccountable and Unrestrained

In May 2011 and February 2013, Senate Republicans wrote to President Obama calling for structural reforms to the CFPB. The bureau is far too insulated from congressional oversight of its actions and its budget, and its director has too few meaningful checks and balances on his power. The letters said that the Senate should not consider any nominee to be director of the CFPB until common-sense reforms are adopted

What does all this have to do with Reverse Mortgages?

I mentioned in an earlier blog that I no longer do reverse mortgages.

I exited the business in 2008. 

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 I could see the handwriting on the wall:

Mortgage banks were going to be set up to take the fall for the scandal which led to the “Great Recession.” 

With that finger pointing there would be a truckload of extra bureaucratic nonsense. This nonsense would  burden the lending industry with extra costs.

These costs make originating loans too expensive to make a profit. 

I’m not the only one to decide it wasn’t worth the hassle.

Before 2008 you could walk into any Bank of America or Wells Fargo and get a reverse mortgage.  Or you could use MetLife and get the benefit of their retirement planning advice too. 

Unfortunately you didn’t have those options. These companies also decided it wasn’t worth the price to defend their intentions.  

 That’s a travesty. 

Shame on your government. 

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Their involvement brought credibility to the industry.  

Instead, the CFPB says we need protection. Protection against some “unscrupulous” lenders.  

Nothing could be farther from the truth!  

 I have known and worked with the companies and people in this industry since 2003. 

I’ve never met a scoundrel…

The people I know  care about doing what’s right for the client and do not need to cheat anyone.  Plenty of decent folk make a nice living helping you find the right solution.  

They get a bum rap because of the witch hunters but I can assure you that you need not worry.

Any reverse mortgage company that you might choose to work with are licensed, ethical and most importantly, regulated by the institution that  counts, namely, the “FHA”.  

These people are dedicate to providing a solution to your retirement challenges.

They don’t deserve the skepticism created by the CFPB. 

Don’t fall for the witch hunter’s fear tactics. 

reverse mortgage options

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