Also among the more startling ones Click Wealth System that grew, included the idea of paying LO's and AE's commissions (six plus figure incomes!) vs. previously customary salaries + bonus - which made them transaction and commission check focused and it took away from a fiduciary duty to place the customers interests ahead of their own; the notion of permitting unsupervised and unqualified LO's operate as independent contractors working out of their home; wholesale funding sources, overcome by greed, offering one irresponsible loan program after another chasing production; the net branch biz plan often utilizing unlicensed and always poorly trained loan officer/agents to uncontrollably operate nationwide ... I could go on and on about all the changes that came to pass during the 98-05 pendulum swing. This was a most regrettable period for our industry, thankfully, most of the careless concepts are disappearing as we speak.
Let's not forget, the Aug '98 - Dec '05 swing brought us astronomical production numbers all up and down the line - however, those were not true loan volume numbers, but really GIFT stats, as most transactions were a present/gift to the borrowers as there was very little resemblance to real lending being done, given the major deterioration of the vital checks and balances from LO to broker to processor to underwriter to lender and up stream from there. I have never seen the amount of total industry destruction these and others ridiculous practices have caused.
A great many new State and Federal laws are being enacted to protect the public from the Wild West 'out of control' attitudes of the mortgage industry recently, with regulators looking at those they license more closely and enforcement of existing laws being stepped up. By and large, the barriers of entry into the industry should return. A return to previous foolish programs being offered by wholesale lenders is not likely; neither is the business model of permitting unsupervised LO's to be our 'front-line' with the public; optimistically the general idea of avoiding industry education and training should disappear since the 'big easy money' has stopped at last. Wholesalers accepting new business from mortgage brokers without performing appropriate due diligence first, should vanish. Traditional/ conservative underwriting standards (some of you vets I'm sure remember the old 28/36) will resume (including across the board LTV reductions); and along with hundreds of other important areas to consider, the upstream warehouse funding sources, the wall street conduit developers, pool & bond insurers, etc. all should return to the previous checks and balances each were designed for and must perform, to maintain a viable secondary market.
https://pragmaticconservative.com/click-wealth-system-review/