Sam Cooke, the 1960’s singer-songwriter wrote a simple song that was released after his death in 1964. Sam Cook wrote, “It's been a long, a long time coming, but I know a change gonna come, oh yes it will.” That song rang loud and clear yesterday as we ushered in our forty-fourth President of the United States, President Barack Obama.
Many lenders and realtors may not realize how deeply felt this mortgage scandal is for President Obama. In 2007, then Senator Obama “introduced the STOP FRAUD Act, which would increase funding for federal law enforcement programs, create new criminal penalties for mortgage professionals found guilty of fraud, and require industry insiders to report suspicious activity” (Whitehouse.gov, 2009). So, if you are a mortgage professional, be prepared to see volumes of new legislation that will serve to add to an already overwhelming litigious environment. Unfortunately, this is necessary because of all the bad practices of discount lenders giving bad loans to people that either were not responsible or were unaware of the terms of the loan.
Although it was a song of hope for the Civil Rights Movement and an inspirational celebration of lyrics, one may be mystified at how I believe it applies to the real estate and lending industry today. Me too quite frankly! Seriously though, in present day, it is a song that illustrates the struggle of a nation on a perilous slide toward devaluation and a promise of a change in course to avoid it. The bailout plan to help families stay in their homes instead of facing foreclosure was disguised as yet another bank bailout. So, families are still without relief. President Obama has pledged to “address the foreclosure crisis so that we can keep responsible families in their homes” (Whitehouse.gov, 2009).
We’ve had a few really bad years in the real estate industry but I think I’m able to carry on. It’s been a long time coming, but I know a change gonna come.
Godspeed President Obama…
