I recently read a post on the Top of Mind Networks blog by Brian Brady and I thought it would be interesting to raise the subject on ActiveRain as well. Ever since about August of '07 mortgage brokers have been one of the primary scapegoats of this whole credit crisis, housing crisis, recession, dare I say depression, we are currently going through. Former Bloodhound Blog contributor Morgan Brown actually predicted the death of the wholesale lending channel only a few months later:
"If you don't see the change, it is because you are blinded by both the slow, silent moves of the attack and your own hopeful optimism of a return to normalcy. But there will be no return; for the mortgage broker's days are numbered."
I am a firm believer that mortgage brokers, despite some of their faults and stereotypes, are still the best resource for the consumer to receive unbiased lending advice (this is of course assuming you aren't talking to a crooked broker, but there are crooked people in every industry). So long as the broker operates his or her business with integrity and takes on a fiduciary responsibility to the borrower they truly can offer the best deal for the consumer.
Recently, NAMB has been arguing their case in front of a Congressional Committee for things such as fairness in licensing standards among all originators (bankers and brokers alike) and more consumer-friendly disclosure documents. It is my opinion that NAMB may be suffering from an identity crisis. Rather than fighting some of the recently enacted and pending legislation why not embrace it and then use it to your advantage? Don't wait for imposed simplicity in disclosures, offer it now. Certain federal disclosure forms are confusing but a NAMB generated form can position you as the transparent choice. Be proactive in the consumers' eyes. And if regulators believe that independent mortgage brokers must be licensed then you should promote the fact that you have the distinct advantage of education and fiduciary duty. That is a unique opportunity to differentiate yourself from "the inferior qualifications bank sales representatives have" and the "one-sided relationship lenders offer the borrowers". Of course not all of the legislation in the pipeline can be viewed as positive, but I don't think it is all negative either.
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