Seattle Bubble Forum Archive

I personally know of one person who quit her job in retail (clerk) to start a mortgage company. She did quite well and in 2006 bought a 500K home in Newcastle (no money down adjustable).

Just heard that her company is kaput!

And if she goes back to her old job (retail) then one wonders how she will make the payments.

That is if her new "employer" is not the county jail......

I asked her one time if she was handing out the "high risk" loans and she told me that her commission was higher for these type of loans. I remember being surprised because I thought that this was "rewarding risk"...which made no sense.

And guess what?.......

I think we are just seeing the tip of the iceberg when it comes to "fraud" cases.....

Commission is higher because the loan is harder. Client can't shop around for these loans, so typically they are being charged for 1-2 points easily.

Mortgage has to be one of the easiest way to make money. All you need is ONE person that knows what they're doing, everyone in the brokerage will profit.