Below is a recent exchange between a mortgage broker and a writer for Real Estate Journal:

As an owner of a small mortgage brokerage, I have to take exception with a statement in your recent article as it is not accurate. You wrote, “Unfortunately, most of the kind of skullduggery you describe is committed by mortgage brokers.”

While I agree with your characterization of predatory lending, it is not limited to brokers, nor is it brokers who are primarily engaging in such practices. One need only look at the recent law suits against Household Finance and Ameriquest Mortgage, both major subprime lenders, to know that bankers share just as much responsibility for these types of practices.

Mortgage brokers seem to be the patsies for all the bad lending practices that occur in the marketplace. One reason is because we are small business owners without the propaganda machines and legal counsels of the big banks who repeatedly get away with blaming the little guy. While we do account for over 60% of originations in this country, that does not translate into our being the majority violators. Anyways, I agree with the rest of what you wrote, but I still wanted to set the record straight. Steve.

Response: You are right, and I apologize. I was just a little too glib. But the fact is that the suit — and subsequent settlement — with Household Finance is old news, and the more recent suit and settlement with Ameriquest Mortgage, while huge both in dollar amount and ramification, had to do at least in some instances with practices that the company stopped some time ago. These and other major lenders have drastically cleaned up their acts. But rouge brokers have not. And when they are found out in one jurisdiction, they simply pull up stakes and head elsewhere. The big guys, on the other hand, have nowhere to hide.

That said, every borrower, no matter who he or she is dealing with, should be extremely careful by, among other things, avoiding deals that seem too good to be true; not signing blank documents, papers you don’t understand or those that someone promises to fill out “later;” trying to borrow more than you can afford, no matter what the lender tells you; and not being pressured or rushed. Reputable lenders always allow borrowers to take their time and consult someone they trust. If your instincts tell you something’s amiss, you are probably right.