Mortgage Broker or Direct Lender, broker vs. bank for mortgage

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Mortgage and Lending with Allegiance Mortgage Services

My marketing manager showed me this website yesterday...

You may have already seen this, or like me you may be shocked...Looked how many big lenders have fallen by the wayside.  When they fall, your broker who was placing a loan with them can send your loan to another bank.  or, when they fall, suddenly - in my experience, what happens to the files they were working on for customers who chose a direct lender instead of a good mortgage broker? 

http://ml-implode.com/

There are two types of mortgage brokers...good and bad.  The good ones care about their customer and ensure that customer provides referrals and repeat business after closing.   Nothing beats a good mortgage broker for a residential mortgage.

PA Mortgage Professionals

 

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Rainer
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Tara Colquitt
Tara Colquitt, The Credit Woman, LLC - Philadelphia, PA
Credit Counselor
A friend that is a mortgage broker sent me this link a few months ago and it was scary to see the number of lenders closing daily. In fact, we were talking and she was just looking through and found out a deal she was working on wasn't going...lender was out of business as of that day. Of course, she still closed her loan, but she had to scramble to find another lender.
Feb 09, 2008 12:41 AM #1
Rainer
37,636
Roger Hunt-Jumbo Loans
Private Mortgage Advisors/an affiliate Wells Fargo Bank N.A. - Burlingame, CA

I just read your comments and I got to tell you the site you are referring people to is questionable at best........I was a mortgage broker for 15 years, and am a direct lender with WFB now, and the arguments you make may have been true before the mortgage meltdown but I will tell you first hand, I am very glad I am a direct lender right now....contrary to what you say here (that a mortgage broker can keep the file alive when the wholesale lender or bank goes out of business is very flawed....). It used to be true that the advantage of the mortgage broker was a pool of lenders with great competive rates, what is true now is that the mortgage broker has less and less wholesale avenues and very little control of the transaction and the ever changing guidelines....the direct lender (especially WFB where 75% of my brokered biz used to go) now has the money, the control and the loan officer (I am a Private Mortgage Banker with underwriting authority) knows the guidelines before it even hits the broker street, and the direct lender is making the decision anyway (not the broker) so the approval is coming directly from the bank instead of being filtered thru a mtg broker....I am not saying a great mtg broker isnt an incredible ally, just that it is not the best option in this current market 75% of the time!

Nov 06, 2009 10:56 AM #3
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Rainer
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Christine Thierry

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