On a Serious Note - How Congress Waited to Enact the SAFE ACT until 2008

"With the security industry regulated to the point where a FINRA registered rep can be barred for simply using the wrong language, I think it's astounding that Congress waited until 2008, after the sub-prime meltdown, to enact the SAFE Act; Secure and Fair Enforcement for Mortgage Licensing. As an experienced professional in both the securities and mortgage industry, I can comment first-handedly that the lack of knowledge and professionalism from Mortgage Professionals largely contributed to the sub-prime meltdown. Sure, homeowners were naive while they over consumed, living far beyond their means, but many homeowners also suffered because they were not consulted in a professional and informative manner. Homeowners were often advised that sub-prime "2/28 ARMS" were the best loans for homeowner's who had damaged credit. Many homeowners consolidated their credit card debts, leaving very little equity, yet these loans were pushed by the banks and the loan originators. Beyond that, as a loan officer during the sub-prime days, I experienced competition from Brokers who gave bad advice to homeowners by low-balling the interest rates and then exploiting the good old bait and switch. Because of the wide-range quality of Loan Originators within the industry, there was never any consistency in the industry; from both the Customer's perspective and the Loan Originator's perspective.

It’s unbelievable how Banks such as Wells Fargo did “no ratio” stated income loans with credit scores starting at 620! Wouldn’t you think that would raise red flags to the banking wizards who worked at these institutions? Of course it did! The banks’ Credit Analysts over-looked it while Congress never looked at all. It is just astonishing that this country can regulate the securities industry to a tee while the mortgage industry, where a mortgage is an American's biggest investment of their lifetime, was embarrassingly neglected. I am amazed by the congressional oversight, rather the lack of, for the mortgage industry as well as homeland security at the time of September 11th, 2001.

It seems to me that this country acts only after a catastrophe has occurred. Therefore, I think it is imperative that industry professionals voice their concerns for what they think is being ignored before it's too late since it's apparent that Congress won't figure it out on their own." - NY Associated Press