Recently on another forum, a reputable mortgage company Noticed some major changes when trying to fund a loan where all of the work has already been done! Many consumers, some even being past clients, have noticed MAJOR CHANGES within the lending industry. Many banks are closing their wholesale operations.
The problems started when the defaults started rising, foreclosures followed and banks were loosing BILLIONS. Now it's easier than ever to get a loan modification, and even short sale your home if you owe more than it worth.
My answer to the question someone had on another forum pertained to CitiMortgage and them demanding a certain number of deals per month, and later no accepting mortgage originations from Mortgage Brokers. Now Chase has totally closed up their wholesale operations. Big Banks are trying REAL hard to squeeze out Mortgage Brokers. With the appraisal changes coming in May 2009 and much more, they will soon have not much short of a monopoly on the mortgage / banking industry.
This is why I decided to join forces with a larger group (vs having a small 'mom and pop shop') and it was a good move!
If big banks gain a monopoly to squeeze mortgage brokers out, who will look out for the consumer?
Imagine if there were no wholesale mortgage brokers? This is NOT good for the consumer. Here's why:
People like us help people! We place loans, even tough ones, and find the best pricing on good loans.
Imagine this if you, as a client, walked into your bank, Bank A and they turned you down for a loan.
Then you try Bank B - no loan.
What happens to your credit score by the time they get to Banks C & D (that might have been able to write the loan), but now perhaps your score will not be within their guidelines. Sometimes even in a case where it is only short 1 point!
The mortgage brokers know what banks write what, and we are paid professionals who do all of the homework (with just 1 credit pull) and submit the loan (READY TO DELIVER on the secondary market) to that specific lender.
Consumers need us, perhaps more than you know....
Make sure you write to your local congressman / woman and let them as well as our newest president know Why people like me, are so very important to help you!