Foreclosures, declining real estate prices, mortgage fraud and Stated Income Loans all seem to be very in vogue topics. Yet recently, most of the spotlight has been sparred for the Mortgage Broker. As mortgage professionals, it is our obligation to try and not only defend our profession as a whole, but clear up some of the common misconceptions about our industry.

Who is the Mortgage Broker you may ask? Well, the vast majority of Mortgage Brokers are very ethical individuals who hold themselves to the highest degree of professional standards. Most are small business owners and loan officers deeply entrenched in the fabric of every community in which we live. We are fathers, mothers, sons and daughters. We coach your kids on Saturday mornings and bake cookies for your local bake sales. And while some have violated our principles and code of ethics, the blame should not fall on those of us whose integrity and conscience continue to define the capabilities of our industry. When one looks past the negative media spotlight and looks at what role we play within the financial services community, they can clearly see that mortgage brokers are a very integral part of defining their overall financial plan. Therefore, the disservice of a few should not be the gauge by which to measure an entire industry. There are many equally, if not more, responsible parties that have contributed to the overall confused state of our real estate markets, including; builders, Realtors®, appraisers, and even retail banks themselves. Oh and please, let us not forget our most sacred treasure, you the borrower. This little talked about subject has had dramatic and wide spread repercussions on our industry. Borrowers themselves have used and manipulated the loan programs incorrectly and even fraudulently to fulfill their get rich quick real estate investment schemes. The thirst for wealth at one point was so great that it blinded many and with every late night infomercial claiming ‘you to can be a millionaire in real estate’, is it any wonder that we are in the predicament that we are in?

With all of these doomsday scenarios at work, what is the Mortgage Broker to do? Disclose, disclose, disclose and then when you are done, re-disclose. We have taken the time to listen to the guidance provided to us by our governing bodies and yet we are no better off. Some even say we do not provide enough disclosure! “More paperwork for everyone, Yippee!” Some say we disclose so much that we actually confuse instead of educate. “Their trying to defraud us!” Really, at the end of the day all we want as an industry is to make a concerted effort to help people navigate the mortgage maze and make the best possible decision for their respective families.

Are we easy targets? Maybe so, however there is no collective arbitrary entity to stand up for us when the lynch mob arrives. The Realtors® have the NAR. The builders have the NAHB. The Banks have the ABA. We as Mortgage Brokers have the NAMB, but I suspect you have never heard of them. Why, well that is a question that is being asked louder and louder by the minute. Most brokers would say that we really have no voice when it comes to addressing the concerns of policy makers and consumers on our behalf. Decisions are being made by the individuals you elect, who have no real banking knowledge or the courage to stand up to the big banking institutions that line their pockets. So the results seem fairly obvious. Our mortgage system got fat and bloated and is only now looking back to see where things went wrong.

We now find ourselves in the middle of a precarious PR predicament. A 30 second sound bite news clip, a news column created to sell newspapers or a campaign platform that does nothing to educate the public and everything to create further confusion about us. Amidst this whirlwind of negative publicity, we will continue our mission of providing a quality service at a reasonable cost to many families that depend on us, each and every day.

The fact of the matter is we provide low cost mortgage alternatives to a retail bank which has been proven time and again. We consistently offer lower rates and fees than many of the banks we eventually send your loan to. We offer a more personalized approach to the mortgage process by taking into consideration the clients' current financial needs, financial goals, and both your short and long term plans. We cater to all levels of sophistication and offer a different level of service by shopping the thousands of loan programs and finding the few that best suit the clients' needs. Essentially, we give you the options and let you decide. We help clients turn their bad credit habits around, encourage them to clean up their current credit problems and purchase a home they otherwise would not have been able to do. The lessons, tips and techniques we provide help the less than savvy individual mold their financial futures with the best information possible at that time. For many that will create better financial lifestyle for the rest of their lives.

Our profession is based on what is in the best interests of the client and the community. We would not be around very long if we didn’t. Believe me, this is not by mistake! We as mortgage brokers originate 2 out of every 3 loans made in this country. We take pride in doing this and place a great deal of importance on the value of the advice we provide. This is the true essence of any advisory business. Although it can be a rewarding career financially, it truly is not all about the paycheck. We fully endorse education for consumers! We fully endorse the education of our loan originators! And we fully support any reasonable change that would not punish borrowers or our industry as a whole for the past mistakes of a small minority.

In light of all the negativity some people want to place on us lately, we will continue to persevere and be a positive resource for our clients, while maintaining the highest degree of ethics and professional standards.

Thank you,

Kyle S. Hufford, along with my colleague's at Broker Outpost