Anyone else taking webinars to either brush up on your existing skills or to learn about new skills and programs out there? Given the state of the ever-changing mortgage industry and, the economy as a whole, I personally find learning soothing – if I give into the inquisitive side of myself, the crazed, emotionally charged side cannot take hold as much (I know, for those of you who know me personally, you’re thinking, “you don’t ever let your emotions get the best of you” – said, no one ever).

So, I was sitting on a webinar for ARM jumbo products yesterday, which was helpful and informative (more geared towards sales though I find learning about all stages of the game helpful to an operations specialist, but I digress). I found the coaching interesting, and the material clearly presented, however there was a moment where I found that more emotionally distressed version of myself start creeping in. An attendee in the class asked if the investor offered a specific type of product, an oldie (and not one I believe was a goodie) that carries with it more inherent risk for both the lender and the borrower. The investor’s presenter noted that while they did not offer that product currently, they were in talks to add it to their portfolio in the near future.

Now, the specifics of which investor, or which product I’m speaking of is not really that important, what is important however, is the take away from that moment. For those of us who have been in this industry long enough to have a bit of PTSD from the last case of market tomfoolery which ultimately led to the “great recession”, hearing about some products that were influential in the downfall of companies and borrowers alike, coming back sparks a bit of anxiety. Learning about new programs, of which many are simply old products re-packaged and re-branded to appear new, while carrying the same risk weight as days of yore, also can spark some trepidation. I was one of many, I’m sure, that took a hard look at themselves in years past and wondered what my roll had been in what was a widespread, costly result to the greater population.

Now, I’m not so naïve or narcissistic to believe that little old me had a huge impact on the outcome from the last world wind, but I did come back to this industry after a mini-break years ago determined to make sure that I performed my duties in a way that allows me to stay on the responsible side of things. Not being an economics guru, I have recently started doing some learning on my own, as I find the topic interesting. I am in the middle of what I think is a very good book that helps to explain the broad picture of what happened years ago; “Firefighting – The Financial Crisis and its Lessons” by Ben Bernanke, Timothy Geithner, and Henry Paulson. The book does a fantastic job of explaining that the mortgage industry alone was not to blame but was simply one spoke on a financial wheel. One consistent theme throughout the book is that of balancing the necessary component of a forward moving economy with Moral Hazard.

Now, I am not going to lecture anyone on moral hazard. It is not my place to do so. What I will say is that moral hazard, when folks are only thinking about the bottom line, can turn into moral turpitude and that is something to be leery of. So, while I know that things may seem hard right now and looking at any old lending program to beef up numbers may seem appealing on the outset, try to remember that is something we should be cautious of. Make sure you learn everything there is to know about a product before pushing it out there so that you can end your day knowing you’ve helped borrowers achieve their dreams, the greater good at large AND your bottom line.