Clarion Mortgage Capital
Clarion
Mortgage can no longer help you through the loan decision process.
Clarion Mortgage Capital,
Inc.,
will discontinue origination
loans
and cease operations on July 31,
2011.
Thank you Dodd-Frank for taking a business
model that afforded many people a good living and totally grinding it into the
ground.
Mortgage Brokers have taken the brunt of the
criticism for the meltdown of 2008. Brokers at one time originated over 50% of all residential mortgage
loan. It is now 7%. But we only originated loans based on the bank and lender guidelines. The lenders would
underwrite the loan and sell it to the big banks on Wall Street. We were many steps removed from
the sale of collateralized debt obligations. But we are the easy target. The Big Banks are just to strong
to go after.
What will happen is the mortgage industry will
shrink with many people leaving the industry. You will have less competition, which will cause rates to go up
and posssibly upending any housing recovery. Banks will only lend to the most creditworthy, leaving many
people with minor credit blemishes with nowhere to turn.
Dodd-Frank was solution in search of a
problem. Unfortunately the mortgage broker was not the problem.
Update!
Bank of America has just announced a $5 fee for debit card
usage. Is anyone surprised? Politicians are not very bright and only make short term decisions to pander for
votes. Banks are not going to lose money; they will pass on the costs to us, the customer. This is only the
beginning. Dodd-Frank is a bad law that will cost us money and make things worse.
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