July 20, 2020|Disclosures, Employment Issues, Mortgage Industry, Professionalism
Truck drivers and mortgage brokers
The mortgage industry was much maligned in the last recession and, unfortunately, deserved at least some of the shady reputation it earned. The classic pre-NMLS stereotype was the unlicensed and untrained former truck driver turned mortgage broker (and day trader) pushing unqualified borrowers[1] into homes bought using subprime, negative amortization, and stated income loans; all ending in foreclosure, borrower misery and the worst recession since the Great Depression. In fact, I wrote back in 2011 how professionalism was needed in the industry and even more important than disclosures to protect consumers.
Over the past 10 years, however, (with some nudging[2] from the Dodd Frank Act and a stepped up regulatory environment), the mortgage lending community, led by banking and mortgage trade associations and compliance professionals have dialed up the professionalism and consumerism of the industry, providing good reason to be proud of the profession. In fact, back on March 18, at the beginning of the COVID-19 epidemic, I wrote about how the mortgage industry could be heroes in the COVID-19 crisis. But, despite the industry’s spectacular response to facilitating homeownership through the challenges of working through a pandemic, apparently, not everyone in the mortgage business understands how to act with professionalism.
Anthony Casa and friends
As reported by Rob Chrisman and many other industry news outlets, the mortgage industry recently witnessed the founder and CEO of a mortgage broker trade group (AIME), Anthony Casa, calmly and deliberately deliver a chillingly unhinged video tirade against an industry participant Casa dislikes[3]. The videos included vile and demeaning verbal attacks on the competitor’s wife. Casa was apparently proud of his work and shared his videos with a couple other industry leaders who then videoed their reactions and shared a good laugh about it.
The “I’m from Jersey” excuse
Mr. Casa’s initial apology and defense of his actions claimed he had been “egged-on” and that he was from New Jersey. I’m not licensed to practice law in New Jersey[4], but I have watched enough episodes of Jersey Shore, Real Housewives of New Jersey and The Sopranos[5] to be pretty sure that under New Jersey “law”, offensive remarks about a woman can result in excusable physical harm to the offender, particularly if the maligned woman herself exacts her revenge in that fashion[6].
We can (and should) be better
Mr. Chrisman said it best, “there is no place in mortgage banking for childish and/or vulgar bullying among competitors, and it certainly does not help our industry.” Former HUD FHA Commissioner and MBA Chief Executive Dave Stevens chimed in too, echoing the call to“be a better industry”. Meanwhile, Mr. Casa has landed himself in a lawsuit for defamation in which those friends are named. He later put himself on a leave of absence from his trade group.
Unfortunately, as poignantly noted by Mr. Stevens and mPower founder and MBA COO, Marcia Davies, while some responses in the industry have been swift and appropriate, condemnation has, surprisingly, not been universal. More may yet be to come for Mr. Casa and AIME, and it remains to be seen whether the others involved will also apologize and/or suffer any professional consequences for their actions (“up to and including termination”, as commonly noted in HR Handbooks). I don’t profess to be the civility police or to make any claim to moral superiority because I’m a Chicagoan, but, as far as I am concerned, even people in New Jersey and stereotyped former truck drivers should be saying, ‘these guys are giving mortgage brokers a bad name’.[7]
[1]The ability to fog a mirror is not a sufficient underwriting qualifier. Hat tip to my late Uncle Jerry for that idea.
[2]This is a bit of an understatement. Take the LO Comp Rule for example.
[3]Another understatement.
[4] This excellent mortgage attorney is licensed in New Jersey and he had to go through quite an ordeal to get that license, so…, respect!
[5]And you thought I was going to say, “but I stayed in a Holiday Inn there”.
[6]No, you can’t legally physically harm someone in New Jersey over “a bunch of words” … But you can if they look at you funny. Call this New Jersey licensed settlement service attorney to confirm this point of law.
[7]This guy in Australia isn’t doing any favors for Australian mortgage brokers either.