The same with the mortgage brokers that were selling…
“The same with the mortgage brokers that were selling people mortgages they couldn't afford. We shouldn't pay them on each mortgage they write. They should have what they call "skin in the game," where they've got to reimburse us if the guy who sold the mortgage defaults.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The speaker argues that mortgage brokers should share risk with lenders, only receiving payment if loans perform, to align incentives and prevent reckless lending.
In simple terms: Brokers should only be paid when loans succeed.
Key Takeaway
Tie compensation to loan performance.
Themes
finance
ethics
incentives
Mood
concerned
critical
Type
policy
opinion
When to use this quote
- bank lending
- mortgage origination
- loan underwriting
- policy design
Key Concepts
risk sharing
principal‑agent problem
regulatory reform
Questions to Reflect On
- How can we balance risk sharing with access to credit?
- What safeguards prevent unintended credit tightening?
A Different Perspective
Implementation may be complex and could reduce loan availability for qualified borrowers.