We are having a grand time here in Colorado, “cleaning up” our local industry. The plan was to implement a licensing procedure that included an FBI background check and a surety bond requirement for brokers. Supposedly, this was going to wash out the riff-raff. The only problem is that the do-gooder brokers calling for this didn’t realize that the cost of the bond was dependent on the broker’s personal credit score. Guess what? Half the brokers out their have crummy scores. Now they are squealing like stuck pigs because the surety bond companies are screwing them into higher rates than they originally expected. What delightful irony. :p
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Cleaning up the industry is something we really need, but not just from crooks. There are some people in the real estate and mortgage business who can’t even spell the word ethics, much less practice it. Wouldn’t it be nice to have ethics police out there. Cleaning up bad practices might actually do something to improve our reputation.