Late on Friday, Countrywide announced that it will cut 12,000 jobs in the next three months. And, with the additional news that mortgage foreclosures are at record levels, I think we will now see prolonged hand-wringing and knee-jerk reactions from Congress. Congress needs to step back and let the market sort things out. I do think we need to support the people that were put into a position that they shouldn’t have been put into. But as far as I am concerned, the lenders should be left to the market. Anyone that puts most, if not all, of their investments at such a high-risk, should not be allowed to touch other people’s money, ever.

Here in Washington State, mortgage brokers and loan originators will now need to pass a test to be licensed. Probably a good thing, as this is the biggest purchase that most people will ever make.

High returns do not always mean high risk. I don’t consider anything under a 12% return as high-risk. And, 14% to 16% only a moderate risk. It is permissible to show a client what their money will do at 12%. So if FINRA thinks it’s ok… Why shouldn’t you?

Tags: finance, mortgage, credit