Independent Mortgage Brokers….Not Dead!

The Report of my Death was an Exaggeration - Mark Twain, 1897.  A couple of years ago, I had the opportunity to attend a Wells Fargo regional sales meeting.  A thunderous roar erupted from the audience when the keynote speaker announced that “the mortgage broker model is dead”.   I wonder how many mortgage sales people in that audience  have been let go for not meeting their “loan quota” or the thousands of reverse mortgage representatives who will receive a pink slip as a result of last weeks announcement. 

The past 3 years have been a very challenging time for the independent mortgage broker.  They have been blamed for the current housing crisis, shunned by many banks and singled out for special regulation by the U.S. Government.  Yet, despite this and lets add not getting any taxpayer-funded bailout to weather this crisis, they are thriving.

If you are looking for a mortgage today, it is in your best interest to speak with one.  Why? Unlike their counterparts at your local bank they are licensed and must pass a national and state examination, subject themselves to a rigorous background check by the FBI and state officials.  In addition, they must demonstrate their continued proficiency with continued education. That is just the beginning.

Your local mortgage company is that small business you hear the government constantly speak about in glowing terms, yet does it’s best to stifle with taxes and ever more regulation.  They offer professional advice, more loan options and better rates because they work with several banks and are able to pass along the savings to the consumer.  Their survival depends on efficiency, repeat business and referrals from happy clients so customer service is paramount.      

Many consumers have been lured into the notion that their bank is the best source for a mortgage.  My reccomendation, call a bank and get a loan rate quote along with a Good Faith Estimate and then compare it with one from your local mortgage broker.