I’ve been watching a comment thread develop over at Think Big Work Small. The daily video blog by Frank Garay & Brian Stevens is a popular destination for originators in the mortgage industry. This particular piece was about NAMB & NAIHP each filing their own respective lawsuits to stop the Fed from implementing the new compensation regulation for mortgage originators which is set to begin April 1st, 2011.
To gain some perspective, I thought it would be interesting to collect some of the “inspired” comments from the peanut gallery and group them by category.
Valid feedback that NAMB & NAIHP should ponder
“I have looked into joining NAMB in the past but haven’t because they make you go through your local/state organization that charges a very steep membership fee. Additionally, when NAMB sent out an email link asking for contributions a few months ago I was willing to give, but the link had a minimum donation amount of $200. That was a little more than I was able to do at the time, but the link didn’t give an option for donating less.”
“I actually left the business. Part of the problem (for me) is that the American public is basically illiterate when it comes to basic finances. They all are complaining the banks were too lenient and now all they do is complain about all the required documentation. I just lost a passion for the business – it’s really a “thankless” job! NAMB doesn’t even respond to emails and when polite but differing opinions get posted on their You Tube “announcements,” NAMB simply deletes the comments.”
“The reason why I haven’t joined NAMB or NAIHP in my 12 years in the industry is that I have never seen a benefit to doing so.”
Comments that indicate communication problems at NAMB
“The fact that you can’t even join NAMB unless you go through your local organization (which is run by all bankers) seems odd to me.”
“I am CEO/Chief Loan Officer of a 20+ person mortgage brokerage in New York. Neither of the two organizations has ever reached out to my company to invite membership or explain their mission to us. Neither has NYAMB for that matter. I’d say that’s pretty telling of the lack of direction and initiative, is it not?”
“If either organization communicated with LOs the way Frank and Brian do, providing something valuable without demanding something in return, maybe one would rise to the top.”
Comments that indicate ignorance of fact
“It seems that they never exercised any power and were ineffective at slowing the avalanche of harmful changes since 2000.”
“Both organizations seem worthless—just look at all the insane regulations that have been levied on the mortgage broker industry in the last several years. They have stood by and done nothing. And now these two competing lawsuits are the classic “too little too late.””
“I think that these organizations are more interested in thumping their chests and asking for dues than helping brokers.”
Comments that are just plain stupid
“No Lobby, No Money, No politcal figures in our pockets. Mr. Mazillo walking away with 400 million, we don’t have a chance. We are the red headed step children of the fallen economy, how can we have a voice!”
“Someone should get NAR to help us instead”
“They didn’t stop the meltdown and help their members.”
“My reason is…I pay for results. I am 100% commission and I don’t get paid until the deal is funded. Why does NAMB or NAIHP think they should be any different? HVCC, GFE 2010, NMLS, so far they have had 3 chances to make a difference and they flat didn’t. Why should I believe this 4th time is going to be any different? If they really showed some results instead of give us money so we at NAMB and NAIHP will have a paycheck, then i would join immediately.”
Chicken or Egg?
“Current membership is too small.”
“The real reason many of us have not joined is because it is clear that they do not really represents us the broker and loan officers I have not joined because, ever since their existence the industry just gets worse and worse. Not saying it is their fault, but what good are they? These guys with NAMB, NAIHP are full of EGO!! Edging GOD out! We need to unite and become strong as one.”
- NAMB leadership has done a poor job at determining how to communicate and engage the originator on the street. The membership structure is broken. Technical knowledge to promulgate discourse amongst members is lacking and appears to be in disarray.
- Most originators equate giving money to ‘getting’ involved. There are lots of things one can do to help, donating money is just one way.
- Not joining NAMB because they were unable to stop the housing crisis or because they lack enough clout or members is flawed logic. I’m embarrassed for those commenters. They miss the point of an association entirely and are more likely responsible for the housing crisis than anyone at NAMB.
- Small independent mortgage professionals are cheap. Both with their time and their money. They want free support. They want someone else to ‘deal’ with the problem. They have lots of complaints and offer few realistic solutions.
The outlook for NAMB is cloudy …
As long as the current mindset at NAMB holds firm, the association will lose resources and membership. Potentially, if not corrected, operations will cease. Some of the largest state associations (FL, NY) have left NAMB as a result of the “good-ol’-boy” mindset. By ignoring the originator on the street, NAMB has opened the door to competition (NAIHP) for originator’s hearts, minds, and financial support. I’m not sure if NAIHP will win the day but Marc Savitt’s willingness to be more accessible, authentic, and focused on the issues is a good start.