That is what is coming if the big banks have their way. You may comment to the Federal Reserve up until December 24th, but here are some of the highlights of the proposal. Under the guise of Loan Originator compensation, the Fed wants to cap compensation for mortgage professionals. Bear in mind that the SAFE Act that was passed recently will register all loan officers and require educational testing for some. The reason I say some is that the bank employees are exempt.
Many mortgage professionals have invested a lot into becoming more proficient and to be better able to offer sound advice to consumers. Most of the bad guys have left the business. With an investment as large as a home, wouldn't it make sense to use a professional who knows the industry, the programs, the qualifying methods and who has the background you can have full confidence in? The call centers the big banks are promoting would not necessarily be here in the US, either. So, further erosion of the American job base as well as a large drop-off in quality service is sure to occur should this be imposed.
And if employees are providing mortgage advice along with selling other types of unrelated products with little or no training or background, how is the consumer going to be helped by that? Remember that many of the bad loans were originated via call centers and that type of business model in the first place. If you were going to have a medical procedure performed, would you want a professional? Or a call center employee talking you through things?
It is important for you as a consumer to have the SAFE ACT given an opportunity to work. You don't pull a casserole out of the oven 5 minutes into baking time and decide that you need to change the recipe. But, it appears that what the Federal Reserve is proposing is exactly the same thing.