KEN COOK IS ON THE WARPATH on behalf of all real estate professionals, all home buyers, all mortgage borrowers, real estate investors and more. The target is big banking who are trying along with help from low people in high places to regain control of the industry they so controlled and harvested for many years without any interference from one of the greatest consumer advocacy groups in the mortgage industry in modern history: ethical mortgage brokers.
Big Banks - I have news for you:
1. Brokers are better at generating leads for you than you are for yourself.
2. It costs far less to accept a file from a broker than to originate one.
3. Brokers you are screwing by leaving their clients out to dry WILL REMEMBER THIS CRAP.
4. Brokers provide YOU with a recourse you do not have when only doing retail.
5. Now you'll have to compete DIRECTLY with EACH OTHER - let the blood fest begin!!!
6. We remember how you are treating our clients and they will KNOW IT and it WILL make a difference.
Note to buyers:
You think this is a good thing - brokers being squeezed out. Let me remind you that before brokers came into existence you had very little choice. You were treated like little pigs unless you had hundreds of thousands of dollars "on deposit" at the bank. Let me remind you that before brokers if you wanted to invest in real estate you had to be wealthy BY BANK STANDARDS. Let me remind you that when banks knew you weren't likely to shop (a FREE service provided by mortgage brokers) they felt free to stick it to you then break it off inside you. And that was when banks were local and friendly. Now they are mega-behemoths who don't give a rat's ass about YOU. Brokers at least have VOLUME on your side. If there are no brokers you will have absolutely no advantage in the market.
Liquidity problem my ass! Okay REAL ESTATE PROFESSIONALS, INVESTORS, MORTGAGE BROKERS and all other interested party. If you bank with a bank who once had a wholesale division but has closed it in the last 2 years go tomorrow - or on pay day - and remove all of your liquid assets. Take them immediately to a bank which is REAL ESTATE FRIENDLY.
Let's immediately send a message to the big banks and pull your deposits and put them into a local institution even if you don't have all the bells and whistles and I am DEAD SERIOUS. Send a message LOUD AND CLEAR to people like Aurora, Wells Fargo, Washington Mutual, Bank of America and move your money to Flagstar, Fifth Third, Mutual & Trust (M&T Bank) and others. Fortunately my bank does have a wholesale division and they are a huge bank, too. I bank with Suntrust. I don't use their wholesale division because they are overpriced and a pain in the butt but they work with brokers.
Why:
Let me tell you the most recent reason these crap-heels do not deserve YOUR business. On January 17th (last Thursday) an account executive from a medium sized wholesale only lender told us Aurora was closing their wholesale division. We immediately called our Aurora Account Executive who confirmed and said it was a hell of a surprise to her. We told her about one of our very best clients who we had pre-qualified at Aurora for a non-seasoned cash out (investment, stated, $200k walk away) and she told us all we needed to do was lock the loan. "All loans that are locked by Friday will still be closed."
We went ahead and ordered the full appraisal costing our valuable client $350 (we got him a discount for being a repeat client). On Tuesday (remember Monday was King Day) we received the RESPA package and immediately sent it to Aurora. They called and said, "Duh, what is this? We're closed?" To make a very long story (most of you have NO IDEA HOW HARD BROKERS FIGHT FOR YOU) after 3 full days (Tuesday, Wednesday and Today) of chasing rabbits around Aurora asking for help and mercy we were told, "Nope. Too bad, so sad. Piss off."
Let me add that over the last 7 years we have sent no less than tens of millions of dollars in GOOD PERFORMING LOANS to Aurora wholesale on behalf of our most valued clients. Aurora Bank of Colorado, do you think we will ever trust you again? Do you think we didn't tell the real estate agents who are members of the NAR, the appraiser who is a member of their organization, the attorney who happens to have over 80 locations in Georgia, the Carolinas and Florida? Do you think I'm not going to tell the members and readers of every blog I write on? Every member of every association I am a part of?
This is not BROKERS these people are saying no to - it's YOU. Remember: BROKERS and BROKERS ALONE must disclose their full commission and have had to do so for YEARS. This is nothing new and it's damn sure nothing those freaks DODD and FRANK are "doing for TO you."
Copyright©2008 Ken Cook - FOR THE PEOPLE! Blog Around at http://blogx3.com - The 24: Top American Real Estate Bloggers
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Go get um, Ken!