Mortgage Brokers Making a Comeback

“Being the most highly regulated segment of the origination process, brokers give consumers a high comfort level,” he said. (Brokers and nonbank loan officers face state testing and licensing requirements that bank LOs avoid.)   -  

I've worked both as a Retail Originator and with a Mortgage Brokerage company.  There are advantages to both.  As a broker, I can view an individual's whole picture and search multiple lenders with one credit report to find the best deal for the customer.  Each bank has different guidelines, rates and overlays and just because they didn't fit into one box, another bank may not have that requirement.    It has allowed me to service a larger base by being able to choose where I submit the loan.  I also don't work the restricted schedule of M-F 9-5.  I'm available based on my customer's needs and I'm willing to work months helping a client get things cleared up so they can make a purchase.  Most retail banks just send the basic "no" without bothering with "what can they do to improve".  I work for long term referrals from my customers and Realtor partners, so I strive to give the best service possible.  I get paid when the loan closes, whether it's a quickie 3 week loan or working with a client for months clearing issues prior to purchase.  My fees are disclosed on the GFE, where a bank doesn't need to disclose what they give their originators.  Do you really think they are doing it for free?  No - they add it to the rate.

I'm glad to see that consumers and banks are now starting realize our value again.  People need choices and they love the service we offer.  The new regulations were meant to send people directly into their banks and limit choices.   I always felt that everyone, including the banks should have to abide by the same federal and state licensing requirements and full disclosures (such as what they pay the originator).  Then it would even the playing field. 

Richie - I'm sure there were plenty of bad mortgage brokers skirting the system, just like there were bad Realtors.  The majority of the newbies who jumped into both worlds for the big bucks back then, have left.  What you have left are  long term brokers, who actually did things right and stayed through the storm.  Sorry, it sounds like you had bad experiences with some of those "other" brokers.