Very early in my carrier I used computers to count beans for a regional loan originator.
I saw the week over week sales reports.
We fluctuated our commission structure based on market conditions and sometimes the execs gut instinct. We had price of money exposure during locks and origination. The big cheeses got daily reports from which they were supposed to hedge. They didn’t and got crushed (like the legendary commodity trader at ‘Barron’s Bank’ but much smaller.) They would have gotten themselves very big bonuses had the market moved the other way. Not their money. Place went belly up.
Anyhow, most brokers steer customers into the highest commission loans, not necessarily the best loans for them.
If you are as you say then being a legal agent for the borrower wouldn’t change the way you do business much.
IMHO always ‘Trust but Verify’.
Not much, and I'm not even in Minnesota anyway. However, completely eliminating such loans, which came into existence because of self-employed consumers being unable to purchase homes, is going too far. Plus, I shy away from any sort of blanket regulation of the market.