I haven’t been shy about pointing out that the mainstream media seems determined to paint mortgage brokers as the bad guy. While I am not a conspiracy theorist, I can’t help but wonder if mortgage banks are paying off the media big wigs or are journalist really just not qualified to discuss financial issues.
On Friday, CNN’s Gerri Willis will be doing a show on the Mortgage Meltdown. While I expect the whole show will be devoid of facts and attempt to absolve the consumer of any responsibility for fiscal mismanagement, something caught my eye today that leads me to believe the media is really biased.
CNN is running a web piece called “The lies broker’s told.” It then goes on to say, “An ex-Ameriquest mortgage broker reveals how he talked borrowers into loans then couldn’t afford.” The piece shows Gerri Willis interviewing some guy as a former Ameriquest employee discussing how he duped consumers.
Here’s the problem. Ameriquest, the poster child of predatory lending, is not a mortgage broker. In fact, Ameriquest was a mortgage bank. Ameriquest did not broker mortgage loans. They were a retail sub-prime mortgage bank.
Are there bad mortgage brokers? Sure. However, the media has done an effective job of placing the whole implosion of the mortgage market at the feet of the broker community. I don’t think it is accurate and their lack of knowledge of the business shows in hit pieces like this…
It doesnt surprise me, they been getting it wrong all along. They (the media, washington, etc.) continue to make the broker community take the brunt of this mess, whilst places like WAMU, WELLS FARGO, etc., have repeatedly been noted for predatory lending and shady lending practices.
Didn’t the NYAG bring WAMU to task for their shady lending practices & appraisal fraud. Wheres the special news piece on them???
Darrin:
You are correct. The funny thing about the NY Attorney General’s case against WAMU for appraiser fraud is that it resulted in new regulations saying that broker’s can’t order appraisals, but banks can. Ok… A bank commits mortgage fraud, so we blame the broker and pass laws only affecting them, but not the banks that committed the fraud in the first place. Sheer brillance.
I cringe everytime I hear “mortgage broker” when the term should be “mortgage originator”. I’ll bet the abuses were the same across the board.
Man, those bank lobby dollars are powerful.
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