Too many times I find myself in the same conversation...

It's a debate about the job of a mortgage broker and how they are overpaid for what they do... Inevitably, I find myself on the witness stand, defending what I do.

One person said to me (mind you, this was AFTER he knew what I do for a living),
"Mortgage brokers are way overpaid, I mean, they hardly do anything and they make a better salary than most lawyers."
"Really?" I said with my teeth clenched & my fists closed, "So you are saying I don't have any special skills or work hard enough to deserve my income?"
"That's exactly what I am saying."
I was so stunned, I didn't know where to begin!
Then I said (quite patronizingly),
"Ok, speaking of Lawyers, what is it that THEY do to deserve all that money?"
"Well, they went to school, for one. And they defend you in court."
"True. But do you want a well-educated attorney, or an experienced one?"
"Well of course, I want both."
"And you don't care what you pay to this lawyer?"
"Of course not, they deserve to be paid well for their job."

Don't we all!

But then it hit me.
THAT'S THE PERFECT ANALOGY.
A lawyer and a Broker.

Let me see if I can't explain the similarity AND what I do for a living in the same analogy.

For a perfect example, let's use a civil court.
(I mean, God help you if you are in a criminal court scenario where your mortgage is concerned-- that, my friends, is another blog!).
A client needs to present a case to a jury and get their approval in order to get what he needs. He hires a Lawyer. The jury follows the law based on the judge's direction to base their opinion. The lawyer, although selling your case to the jury, must follow the rules set forth by the law and enforced by the judge. Without the lawyer, you could never know the laws, how to get around them, how to impress the jury, or how to maintain order in your court. You hire the lawyer because she is the expert in the field of law.

So, Jodie, What in the heck does this have anything to do with Mortgage?

Let's try another approach. You need a loan. You hire me. I present the case to the underwriter. The underwriter follow the rules of the lender/bank. The underwriter agrees with your opinion based on the facts you have presented. The banks accept the underwriters decision. You get the money at the best price available to your profile at the time that the application was presented.

Mortgage Broker= Lawyer
Underwriter = Jury
Judge/Court = Lender/bank

In a court of law, there are strict written laws and a whole lot of variables with which to interpret them. Humans (and their opinions, feelings, attitudes, persuasive qualities, interpretations) have the ability to change any rules set forth in the written law within the court system. Some are very tiny technicalities, others are gigantic stretches of the original law. You have to know the laws simply to prove that you you are in fact, abiding by them. You must know the laws in detail, before you can attempt to bend them to suit your needs.

In every lending case, there are the same set of humans and variables and therefore outcomes. The banks change their rules just like their rates... DAILY. Knowing what worked before can be an advantage as much as understanding the change, the reasons behind it, & the hidden opportunities for "exceptions" to the rules.

So back to lending and what it is I do for all that money.

You come to me with a need for a solution. (Aka- money). You may need money to buy a home, you may need money to pay some bills. I don't think it will be news to ANY of you that there are different rates and terms out there with which to finance such a thing.

The case (your profile) must be analyzed. Then the current laws must be researched (regulations, rates, new memorandums). The law may only take one case for it to change. In Mortgage, one newly posted economical report, one rumor on wall street and the same principals of change hold true. A good lawyer knows how to research the law of the moment. A good mortgage broker must have the same ability to know where to find the loophole and be prepared to defend accordingly.

Now we all know of many stories of incompetent lawyers who lose a "slam dunk" case, and we all know mortgage brokers who are guilty of the same offense.
Education matters. Ability matters. Experience matters.
FOR BOTH CAREERS. You pay for experience. FOR BOTH SERVICES.
Does cost always equal the best service? Of course not. But the beauty of experience is references. Always go by references 1st. Price is secondary.

So the next time you think about a home loan, remember these principles of LAW:
1-You get what you pay for when you hire an attorney for experience over price.
2-Never go to court without one.
3-Apply Mortgage Broker/Lawyer analogy every time!

Make it a great 2008!