Industry changes making it harder for mortgage brokers to earn

Michael Dougherty, who is a managing partner at Choice Mortgage L.L.C, is just one of thousands of mortgage brokers who are still finding it hard to make a living with tougher lending changes. These tough changes were brought in to affect after the subprime-lending collapse, these changes had to be made for the industry to survive. In an interview with Harold Brubaker, who is an Inquirer Staff Writer, Dougherty has said “It’s like being punched in the back every time you turn around.” One of the major factors which are making things tougher for these mortgage brokers, is how slow the housing market is and the fact that brokers have to push borrowers to put more money down, as well as doing more credit rating checks on them.

Brubaker has also said that the recent measures from Congress and the Bush administration to help boost the mortgage market, had accomplished little so far. He said “The industry is still going in the other direction as it tries to figure out how to lend to people who will make their payments.”

It looks as though things will get a lot tougher for mortgage brokers, starting this month anyone who has been 60 days late on a mortgage payment in the previous 12 months, will not be able to get a loan which will be sold to Fannie Mae. I can see that a lot of potential borrowers will be refused a loan, as there are thousands of people who would have missed a payment or two with the current economy crisis.