--- title: "Meaning & Key Takeaway of: The same with the mortgage brokers that…" description: "\"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 sho..." image: "https://sms4smile.com/quotes/i/f04/richard-thaler-3060_brokers_the-same-with-the-mortgage-brokers-that_2652092.jpg" --- # 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.” quote by Richard Thaler](https://sms4smile.com/quotes/i/f04/richard-thaler-3060_brokers_the-same-with-the-mortgage-brokers-that_2652092.jpg) [Download](https://sms4smile.com/quotes/i/f04/richard-thaler-3060_brokers_the-same-with-the-mortgage-brokers-that_2652092.jpg) [Open image](https://sms4smile.com/quotes/i/f04/richard-thaler-3060_brokers_the-same-with-the-mortgage-brokers-that_2652092.jpg) > “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.” [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) ## 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. ★ ★ ★ ★ ★ No ratings yet [Brokers](https://sms4smile.com/quotes/about/brokers/) [Customer](https://sms4smile.com/quotes/about/customer/) [Default](https://sms4smile.com/quotes/about/default/) [Games](https://sms4smile.com/quotes/about/games/) [Guy](https://sms4smile.com/quotes/about/guy/) [Ifs](https://sms4smile.com/quotes/about/ifs/) [Mortgage](https://sms4smile.com/quotes/about/mortgage/) [Mortgage Brokers](https://sms4smile.com/quotes/about/mortgage-brokers-2358057/) [Mortgage Defaults](https://sms4smile.com/quotes/about/mortgage-defaults-1640074/) [Mortgages Couldn](https://sms4smile.com/quotes/about/mortgages-couldn-2358055/) [Pay](https://sms4smile.com/quotes/about/pay/) [Pay Mortgage](https://sms4smile.com/quotes/about/pay-mortgage-687580/) [People](https://sms4smile.com/quotes/about/people/) [People Mortgages](https://sms4smile.com/quotes/about/people-mortgages-2358056/) [Selling](https://sms4smile.com/quotes/about/selling/) [Should](https://sms4smile.com/quotes/about/should/) [Should have](https://sms4smile.com/quotes/about/should-have/) [Skins](https://sms4smile.com/quotes/about/skins/) [Writing](https://sms4smile.com/quotes/about/writing/) ## Related quotes > [The financial collapse of 2008 got its start with predatory mortgages, that weren’t sold by community banks and credit unions, they were sold by…](https://sms4smile.com/quotes/elizabeth-warren/the-financial-collapse-of-2008-got-its-start-with-predatory-mortgages/) [Elizabeth Warren](https://sms4smile.com/quotes/author/elizabeth-warren/) > [The myth is that if housing prices go up, Americans will be richer. What banks - and behind them, the Federal Reserve - really…](https://sms4smile.com/quotes/michael-hudson/the-myth-is-that-if-housing-prices-go-up-americans-will-be-richer/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [“We were taking out mortgages we couldn’t afford because they were camouflaged to look as if we had a reasonable chance of paying them…](https://sms4smile.com/quotes/douglas-rushkoff/we-were-taking-out-mortgages-we-couldn-t-afford-because-they-were/) [Douglas Rushkoff](https://sms4smile.com/quotes/author/douglas-rushkoff/) > [For many people, the mortgages they took out before 2008 are so high that they would be better off walking away from their houses.…](https://sms4smile.com/quotes/michael-hudson/for-many-people-the-mortgages-they-took-out-before-2008-are-so-high/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Maybe you'll take the cash out. 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I want to be able to do independent projects as…](https://sms4smile.com/quotes/spencer-grammer/i-want-to-pay-my-mortgage-and-go-on-vacation-so-i-love-working-i-want/) [Spencer Grammer](https://sms4smile.com/quotes/author/spencer-grammer/) > [I love the stage, but it doesn't pay the mortgage.](https://sms4smile.com/quotes/david-harewood/i-love-the-stage-but-it-doesn-t-pay-the-mortgage/) [David Harewood](https://sms4smile.com/quotes/author/david-harewood/) > [Most women work not from yearning for fulfilment but yearning to pay the mortgage.](https://sms4smile.com/quotes/lionel-shriver/most-women-work-not-from-yearning-for-fulfilment-but-yearning-to-pay/) [Lionel Shriver](https://sms4smile.com/quotes/author/lionel-shriver/) > [There was a time when I couldn't pay my mortgage, and I was really famous.](https://sms4smile.com/quotes/alison-hammond/there-was-a-time-when-i-couldn-t-pay-my-mortgage-and-i-was-really/) [Alison Hammond](https://sms4smile.com/quotes/author/alison-hammond/) > [Will I be sensible and pay off the mortgage? Not a chance.](https://sms4smile.com/quotes/judd-trump/will-i-be-sensible-and-pay-off-the-mortgage-not-a-chance/) [Judd Trump](https://sms4smile.com/quotes/author/judd-trump/) > [If our American women are going to work to put food on the table and pay for the mortgage, then we better make sure…](https://sms4smile.com/quotes/reshma-saujani/if-our-american-women-are-going-to-work-to-put-food-on-the-table-and/) [Reshma Saujani](https://sms4smile.com/quotes/author/reshma-saujani/) ## More by Richard Thaler > [The Nobel Prize is going to be 'fun money' - for an occasion, when my wife and I want a $50 bottle of wine.](https://sms4smile.com/quotes/richard-thaler/the-nobel-prize-is-going-to-be-fun-money-for-an-occasion-when-my-wife/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [In some ways, the finding that financial education doesn't provide long-term payoffs is hardly surprising. 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And you keep swiping your card…](https://sms4smile.com/quotes/richard-thaler/he-card-companies-will-often-as-a-courtesy-honor-that-credit-card-but/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [We all need a lot of humility, and especially about the economy.](https://sms4smile.com/quotes/richard-thaler/we-all-need-a-lot-of-humility-and-especially-about-the-economy/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [Social Security may be the most beloved of all the government's programs, partly because it requires so little thinking. You pay taxes while you…](https://sms4smile.com/quotes/richard-thaler/social-security-may-be-the-most-beloved-of-all-the-government-s/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [If you're trading individual securities, you're almost certainly making a mistake. Because most professional managers can't outperform their benchmarks, and there's little reason to…](https://sms4smile.com/quotes/richard-thaler/if-you-re-trading-individual-securities-you-re-almost-certainly/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [A nudge is some feature of the environment that changes the behaviour of humans but would not change the behaviour of rational economic agents,…](https://sms4smile.com/quotes/richard-thaler/a-nudge-is-some-feature-of-the-environment-that-changes-the-behaviour/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [One reason for high health care costs is that patients fail to follow their treatment regimen.](https://sms4smile.com/quotes/richard-thaler/one-reason-for-high-health-care-costs-is-that-patients-fail-to-follow/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) [Explore all 141 Richard Thaler quotes ](https://sms4smile.com/quotes/author/richard-thaler/) ## More Brokers quotes > [What boy well raised can compare with your street gamin who has the knowledge and the shrewdness of a grown-up broker.](https://sms4smile.com/quotes/elbert-hubbard/what-boy-well-raised-can-compare-with-your-street-gamin-who-has-the/) [Elbert Hubbard](https://sms4smile.com/quotes/author/elbert-hubbard/) > [Israel must never be expected to jeopardize her security: if she was ever foolish enough to do so, and then suffered for it, the…](https://sms4smile.com/quotes/margaret-thatcher/israel-must-never-be-expected-to-jeopardize-her-security-if-she-was/) [Margaret Thatcher](https://sms4smile.com/quotes/author/margaret-thatcher/) > [I was a trader for a company. That's different from the brokers who we sort of disdain as sort of just errand boys.](https://sms4smile.com/quotes/melvin-van-peebles/i-was-a-trader-for-a-company-that-s-different-from-the-brokers-who-we/) [Melvin Van Peebles](https://sms4smile.com/quotes/author/melvin-van-peebles/) > [The government consists of a gang of men exactly like you and me. They have, taking one with another, no special talent for the…](https://sms4smile.com/quotes/h-l-mencken/the-government-consists-of-a-gang-of-men-exactly-like-you-and-me-they/) [H. L. Mencken](https://sms4smile.com/quotes/author/h-l-mencken/) > [It is curious that Christianity, which is idealism, is sturdily defended by the brokers, and steadily attacked by the idealists.](https://sms4smile.com/quotes/ralph-waldo-emerson/it-is-curious-that-christianity-which-is-idealism-is-sturdily/) [Ralph Waldo Emerson](https://sms4smile.com/quotes/author/ralph-waldo-emerson/) > [If your broker or investment advisor is not familiar with the concept of standard deviation of returns, get a new one.](https://sms4smile.com/quotes/william-j-bernstein/if-your-broker-or-investment-advisor-is-not-familiar-with-the-concept/) [William J. Bernstein](https://sms4smile.com/quotes/author/william-j-bernstein/) > [We've always had a dual role in the region - friend of Israel, and honest broker. We've given up the honest broker role completely.](https://sms4smile.com/quotes/chris-matthews/we-ve-always-had-a-dual-role-in-the-region-friend-of-israel-and/) [Chris Matthews](https://sms4smile.com/quotes/author/chris-matthews/) > [Stuyvesant chats with Kelly and Katz, The professor warms to the broker, And life is good in the brotherhood Of an air-conditioned smoker.](https://sms4smile.com/quotes/ogden-nash/stuyvesant-chats-with-kelly-and-katz-the-professor-warms-to-the/) [Ogden Nash](https://sms4smile.com/quotes/author/ogden-nash/) > [Japan should get more involved in mediating disputes between countries and seek to play the role of a peace broker. To make this possible,…](https://sms4smile.com/quotes/sadako-ogata/japan-should-get-more-involved-in-mediating-disputes-between/) [Sadako Ogata](https://sms4smile.com/quotes/author/sadako-ogata/) > [A broker is a man who runs your fortune into a shoestring.](https://sms4smile.com/quotes/alexander-woollcott/a-broker-is-a-man-who-runs-your-fortune-into-a-shoestring/) [Alexander Woollcott](https://sms4smile.com/quotes/author/alexander-woollcott/) > [We never will have any prosperity that is free from speculation till we pass a law that every time a broker or person sells…](https://sms4smile.com/quotes/will-rogers/we-never-will-have-any-prosperity-that-is-free-from-speculation-till/) [Will Rogers](https://sms4smile.com/quotes/author/will-rogers/) > [Diversification is something that stock brokers came up with to protect themselves, so they wouldn't get sued for making bad investment choices for clients.…](https://sms4smile.com/quotes/jim-rogers/diversification-is-something-that-stock-brokers-came-up-with-to/) [Jim Rogers](https://sms4smile.com/quotes/author/jim-rogers/) > [Intelligence, goodness, humanity, excitement, serenity. Over time, these are the things that change the musculature of your face, as do laughter, and animation, and…](https://sms4smile.com/quotes/anne-lamott/intelligence-goodness-humanity-excitement-serenity-over-time-these/) [Anne Lamott](https://sms4smile.com/quotes/author/anne-lamott/) > [Now I'm in real trouble. First my laundry called and said they lost my shirt and then my broker said the same thing.](https://sms4smile.com/quotes/leopold-fechtner/now-i-m-in-real-trouble-first-my-laundry-called-and-said-they-lost-my/) [Leopold Fechtner](https://sms4smile.com/quotes/author/leopold-fechtner/) > [A crafty knave needs no broker.](https://sms4smile.com/quotes/horace/a-crafty-knave-needs-no-broker/) [Horace](https://sms4smile.com/quotes/author/horace/) [Browse all 103 Brokers quotes ](https://sms4smile.com/quotes/about/brokers/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "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. 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