By Michael Regan

As we continue into the second half of 2013, I'm reflecting on the past decade in American mortgage lending. Many thoughts come to mind. Historically, low-interest rates in 2003 & 2005; real estate market all-time value highs in 2006; record foreclosures and REO/Short Sale transactions in 2009; the refinance boom of 2011 that is just now tailing off in 2013.  It has been an amazing decade, no matter how you define amazing.

I recently reflected on a 2009 conversation with my 82-year-old grandmother who simply asked me, "Will the public ever trust banks again?" The public trust banks? I was shocked - maybe even a little defensive. Yet there it was; the ever-popular conclusion held by millions of Americans that the Big Bad Banks had played wolf to millions of sweet, innocent Red-Riding-Hood home buyers who had been led like lambs to their financial slaughter.

As our old friend Paul Harvey (RIP) might like to say, "now... the rest of the story."

I've had a few years to reflect on my grandmother's perspective. Her pointed (and appropriate) question about trust raised an important discussion: Does the Trusted Advisor still exist in 2013?

My point-of-view is probably counter-cultural, but I believe the problem may in fact have begun with the consumer. And if it's not addressed quickly then we're sure to take this roller-coaster ride again in the next decade. To start I'd like to reference the parable of the plank and the speck to help guide my viewpoint. Because in order to fix the problem at the Big Bank level we must first remove the bigger problem at the consumer level: Greed.

I read somewhere in 2006 that "it was greed that got us into this mess and it will be greed that gets us out." Makes for a catchy headline, but is it really wise? Greed leads us all to make choices that take advantage of circumstances, as we assume that looking out for #1 is always the best option when the going gets tough. Greed is like an oasis calling us to a better place and inspires us to run toward a mirage that appears for a flash... and yet is nothing but empty sand when we get there.

Let's look back. How many homeowners in 2003-2005 ran toward the mirage of cheap housing and then doubled-down in 2006 for the "McMansion" of their dreams?  Jobs were good, cash was cheap and housing was the fastest tool to McMillions! Why? Because many of us were greedy. And our combined desire to consume more created a ripe market for banks to cash-in on. So without the consumer to fuel this fire, the Big Bad Banks could not have orchestrated this financial meltdown. 

Recovery for many of us has already begun, but until we choose a plan that is rooted in integrity, we will never avoid the temptation to buy into the next bubble. So today, I announce the return of the Trusted Advisor. It's time to cast a new vision of a future that is built on trust - among all parties. It's time to rebuild the housing market on integrity, one good decision at a time.

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