You all know the 80 / 20
right? Well, does that apply to mortgages and banking in Beaverton
anywhere else for that matter? If you don’t know what the
80 / 20 rule is, that
is where 20% of the people do 80% of the business. However, in the
business that wasn’t the case two years ago.
Two years ago I was told that
80% of the mortgages were being done by brokers, while the 20% was
by the large mega banks. Now, fast forward to today, where
those numbers have
been reversed and the mega banks are now doing 80% of the business and
brokers are only doing 20% of the business.
Now, how does this all
tie together with the title? You see, when mortgage
brokers did 80% of the business, they were always shopping for the best
for their clients. They even would move the appraisal to a new loan to
save the client money. You can about read about that on my post titled,
lending is now even easier and banks are taken full advantage!”
But, is there more they are
doing to get the consumers to not shop around when looking for the best
Beaverton Oregon real estate? You see, the mega banks
are, I believe, working
with big government to put regulations in place for brokers, blaming
all the foreclosures. They are saying that look, 80% of the homes in
foreclosure were done by brokers, so let’s make it harder for them to
business. Once again the government has fallen into the “Wow, those
huge, we have to do something” scam.
Of course 80% of the homes in
foreclosure were loans done by mortgage brokers, because they did 80%
business. So, the mega banks have gotten it so now, the
process is so hard that
mortgage brokers have been forced to close up shop and join the work
the large mega banks or basically leave the business. Not great choices
most mortgage brokers I know. They became brokers so they could work
themselves and their clients, not for big banks.
But, the problem is, the
real ones losing in all this, is the Beaverton Oregon consumer.
The mega banks aren’t going to shop their loan. Once they are locked in
rate, they are going to be stuck there even if rates drop or another
offer them a better deal. Why should they? They have all the power now,
have their own appraisal departments, so unlike a broker, they don’t
have to go
through these middle management companies to get an appraisal done.
Think about gas prices as
less and less small, independent gas stations went out of business
larger ones priced them out of the business. Once they
were gone, they were
able to set their own prices which were of course higher and now the
companies are making record profits.
So, why do all the government
plans that are supposed to help, always seem to hurt the consumer
help them? Maybe the government should start asking the
people working in the
trenches how things can be changed for the better rather than talking
lobbyist or bank president that doesn’t have the consumer’s fiduciary
responsibility as his first priority. His first priority is to make the
holders happy and to do that, they have to make a bigger profit and
come from the consumer. 80 / 20 rule isn’t always the best thing for
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Todd Clark - Beaverton
Oregon Real Estate: The 80 / 20 rule does apply to mortgages now and
the consumer is losing!
Todd Clark (broker w/ Ken's Home Team)
Keller Williams Realty
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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