Are Stand Alone Services Obsolete?

Are Stand Alone Services Obsolete?

Hello Nancy:
I have provided your comments below for the benefit of our readers. I appreciate your feed back and I share your concerns. I am afraid you will find Real Estate Agents providing mortgages as well as insurance and escrow services in the very near future.

Real Estate Brokers have no realistic alternative. Its all about the numbers. Real Estate Brokers not providing closing services and making half as much on a transaction as competing Real Estate Brokers that do provide the services will soon find themselves out of business. They simply will not be able to compete at many levels.

I agree that Quality Control is an issue for today's "stand alone" closing service providers and it certainly will be an issue for Real Estate Brokers. Technology allows us in the Mortgage Industry to maintain high levels of quality control. Similarly Real Estate Brokers will have to provide similar technology for the same reasons.
Unfortunately, most "stand alone" closing service providers will find themselves obsolete.

Anyone whose business model requires the Realtor at Point of Sale to pass off their hard earned clients to highly paid 3rd parties will largely be disappointed. The Real Estate Brokers that do not capture these multiple revenue streams "in house" will not be able to compete with those that do.

Stand Alone closing service providers that want to survive will have to evolve into Real Estate Brokers themselves. Today in California, you see many Mortgage Companies becoming Real Estate Brokers simply because Real Estate Brokers are keeping the loans "in house" and due to the combined revenue streams, they can financially insure the client is getting the best deal.

Nancy Wrote -- As a Mortgage Professional for the last 30 years I am against Realtors acting as loan agents. I would not want to do their job and the industry is so complex these days I don't feel you can do a good job on both ends at the same time. A lot of companies are doing it and I am seeing borrowers being put into crappy loans just because an agent wants a quick close. It is an injustice to the borrower.