Interest Rate Misinformation...The Shocking Fact I Learned When Getting My Mortgage License

It was 2016 and I was sitting in a class to putting in my time and studying for my mortgage license exam in the state of Nevada. Our instructor was a very experienced mortgage agent that had closed over 200 transactions the previous year. With the average commission being $1,500-$3,000, we could all do the math and know she was doing very well!

With a class size around 40-50 we all sat there having flashbacks to being in school. The people in the front were constantly asking questions and taking lots of notes. The people in the middle were just trying to blend in and really didn’t want to be called on. The people in the back of the room really didn’t want to be there!

This was a typical classroom setting. Not much of that week long class do I remember, but this really stuck out to me, so much so that I had to raise my hand a speak up. Our instructor with all her industry wisdom and experience said that interest rates are controlled by the government. Not only that, the slides she was teaching off of were created by a mortgage governing entity in the state of Nevada. She was just teaching what she was required to teach and never thought to question it.

I was completely horrified. I looked around the room at all these people who came from different backgrounds and are there just to better themselves and they didn’t know what to think. I had to explain to the entire class that interest rates are controlled by the federal reserve which is a private bank. I was the only one in the room who was aware of this fact. The instructor as smart as she was knew that I was likely right but she had to go with what was on the slides because that’s what would be on the test.

Wow! An entire class, experienced mortgage agent and governing body teaching this misinformation. If I thought things were messed up before, I really had no idea.

Did you know that interest rates are set by private central banks and not governments?

What do you think about private banks controlling the cost of money?

Keep an eye out for upcoming articles about our debt money system and the truth about inflation vs deflation.