Your Trade Has Been Under Assault for Years!
Your trade has been under assault for years.
The de minimus rule was the first I sensed of the end of your trade. I am going off of vague memory but I think it was 1997, and at the time, the near majority of my town was below the $250,000 threshold, as were 90% of the towns adjacent. I remember an old horse telling me the handwriting was on the wall for him and his kind. As I reflect on it there have been repeated efforts to pare down the costs of borrowing by trimming fees for title and other closing statement fees. The title companies stomped on that toot sweet (tout de suite for the sophisticates in the audience) because they are a VERY coherent lobby with FAT and DEEP pockets protecting a genuine golden egg laying goose. We did see escrow fees hammered as the big guns (FATCO, FNF) saw easy fees and the rise of electronic everything from doc delivery to signatures.
Realtor fees have been cut across the board on a percentage basis, but I will still tell you that my trade is GROSSLY overpaid with sales commonly at $1,200,000 and well beyond. The work we do on a $2,000,000 file is no more than that of the $1,000,000 file. So let the regulators and elected hacks peddle their ignorant blather but believe it, your trade is CRUCIAL to a proper loan file with no hanky panky. And yet your trade is still done. More’s the bummer because the taxpayers will backstop the losses, but hey, gubmint is daddy, right?
Like travel agents that still have a toehold on stuff like cruises or corporate stuff, the trade as a whole is going, going, gone. What remains will not be the pros we know now, but clerks and minions. BPOsare an easy kill. I am licensed in Hawaii, Oregon and California. Anyone want to open shop and do twelve or eighteen a day? The lenders seem to think they’re legit. Maybe they would be if one of you guys did them, but now they’re done by green pea realtors that couldn’t find their derrière with two hands. Just an idea.