You couldn't pay me to work with a loan officer at a bank right now.

By
Mortgage and Lending with Dan Dowling - United Mortgage Capital Corp.

 

Does this sound like I'm pro mortgage broker? 

There's a reason mortgage brokers account for 65% of all loans funded in this country. The current mortgage crisis makes them even more valuable. (as if saving people thousands by shopping the loan amongst several banks weren't enough...)

Here's why.

If you send your loan to a bank and that bank shuts down or yanks the program,  you and your buyer are left holding the bag. Possbily losing escrow money, or the property altogether.

If you send a loan to a mortgage broker  and one of his lenders goes out of business, he/she simply sends the package to another lender.

I know people who have worked at 3 different mortgage banks this year and each time they've gone out of business. That's 3 jobs in one year! All gone bye bye.

 

Just my 2 cents.

Dan Dowling

 

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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Gee Dan.

What happens if you go to a mortgage broker, you've paid for the appraisal, you've paid for the home inspection, you've paid for the termite inspection and your lease is up at the end of the month.

Then the mortgage broker stops answering his phone.  The mortgage broker is out of business.

What happens then??

 

Aug 25, 2007 04:24 AM #1
Rainer
340,963
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

I am more inclined to think that a bank would go out of business less frequently than a company like ohhhhh New Century going under and having the rug pulled out of the brokers business. 

There is less security today with any loan program.

Aug 25, 2007 04:34 AM #2
Rainer
11,647
Gareth Bourriague
Benchmark Mortgage of Louisiana - Baton Rouge, LA
Benchmark Mortgage
Everyone here has good points - being a broker isn't what it used to be.  I'm thankful that I'm both - a banker and a broker.  =)
Aug 25, 2007 04:38 AM #3
Rainer
2,774
Pete Tsakiris
Countrywide Home Loans a Division of Countrywide Bank, FSB - Saint Charles, IL

Another can of worms opening up here.
Sorry Dan, but i completely disagree with you.

Aug 25, 2007 04:50 AM #4
Rainer
71,052
Thomas Weiss
Thomas R. Weiss - West Palm Beach, FL

I like being a broker, and the banks, tend to hire just Mortgage brokers, I haven't gone anywhere in ten years and I am not going to start now..

Tom Weiss

Aug 25, 2007 04:51 AM #5
Rainer
71,534
Beth Bastian
Rosemont Financial Inc - Simi Valley, CA
Simi Valley Real Estate
Depending on the bank Dan has a point.  Being a broker myself, I new submit each of my files two more than one lender just out of fear of lenders going under.
Aug 25, 2007 06:07 AM #6
Rainer
22,190
Dan Dowling
Dan Dowling - United Mortgage Capital Corp. - Altamonte Springs, FL

Pete:

Is that why the CEO of your company (Mozillo) says you're strong as ever one week and then next week lays off 6800 folks? You drink that Koolaide up my boy. I'm not talking from an uninformed position. My whole family (6 total) are in mortgage banking, my degree is in economics, etc. I'm a broker by choice. In fact that study recently done by Georgetown professor proved empirically that brokers save clients more money than banks... e.g. Countrywide. So that even blows that theory to bits.

No hard feelings, my college professor used to say this all the time "people of good will may disagree". Thanks for expressing your banking opinion.

Dan

Aug 25, 2007 08:02 AM #7
Rainer
4,634
Kory Benken
Keller Williams Realty - Lake Mary, FL
REALTOR, G.R.I.

Dan,

I have worked with both Mortgage Brokers and Bankers.  I've worked with a lot of bad ones on both sides of the fence. I wish I could say that I've worked with a lot of good ones too, but unfortunately I can't.

 Here's the main difference I've found as a Realtor working with over 50 different banks and brokers.

Banks. Most of them are "Customer No Service" unless you have perfect credit and perfect documentation. If there is a problem in the deal, they are slow to fix (if they fix it at all)

Brokers. I've worked with 5 or 6 brokers that were outstanding, the rest were in the same category as the banks.  The thing I liked about the good brokers is that they were responsive, ready to solve any problem that came along and almost enjoyed the challenge.  Contrary to popular belief, they are not more expensive than banks (unless you're working with the wrong one) and I like the fact that they shop several different programs simultaneously.

My money (and my clients) are with the brokers.

Great Post

Aug 27, 2007 09:57 AM #8
Rainmaker
325,921
Esko Kiuru
Bethesda, MD

Dan,

That is a decent point you make about why mortgage brokers can be your preferred loan source in today's unstable environment. They do have more flexibility when things get a little complex. It's for a reason brokers have about 65% of the entire market.

Aug 27, 2007 12:13 PM #9
Rainer
22,190
Dan Dowling
Dan Dowling - United Mortgage Capital Corp. - Altamonte Springs, FL

Esko:

You're spot on. Brokers do 2 out of every 3 loans in this country. It's a fact that bank loan officers hate. So they(banks) tend to spread the misinformation that brokers are "middle men" charging clients more money. Which we know is total garbage. Clients are smart. 65% of the country doesn't close with brokers because the are more expensive.

I guess what really gets me is how bankers portray them selves as a higher calibre of professional, and yet they systematically decieve the public with myths like the "middle men" white lie.

Thanks for your input.

Dan

P.S. I am expecting response to the post to be light in that most bankers are out looking for jobs.

Aug 27, 2007 11:16 PM #10
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Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor
Great information and food for thought! Thanks!
Aug 28, 2007 01:45 AM #11
Rainer
22,190
Dan Dowling
Dan Dowling - United Mortgage Capital Corp. - Altamonte Springs, FL

Check out this article on Countrywide at cnnmoney.com

http://money.cnn.com/2007/08/17/real_estate/Fed_move_help_for_borrowers/index.htm?postversion=2007081712

I love the quote at the end about their largest asset being their toner cartridges. Hysterical

Aug 28, 2007 08:56 AM #12
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