Ever since the real estate crash in 2008, mortgage brokers have received a bum rap. Politicians right up to the President have inaccurately used the term “Mortgage Broker” to address the unethical practices of some mortgage salespeople, regardless of whether these salespeople worked for the biggest banks, the mid-sized bankers, credit unions, and yes, sometimes even mortgage brokers.
In reality, Mortgage Brokers are often small, local businesses, active in their communities, providing a competent and concierge service that the “Big Bank” drones simply cannot. They do not have the multi-billion dollar marketing budgets of these Goliath lenders. Nevertheless, mortgage brokers do quite well, with their reputations preceding them and their referral sources praising them in the marketplace.
There have been numerous studies and articles written, confirming that statistically speaking, borrowers do better when working with a mortgage broker. (See New CFPB Complaint Database Reveals Mortgage Brokers Have BEST Reputation! and “Big Banks” Denying Over One-Third of All New York Loans.)
Now, even the Federal Reserve has taken notice.
On November 7, 2013, William Dudley, president of the Federal Reserve Bank of New York and one of the nation’s top banking regulators, commented during a speech focused on the problems posed by banks perceived as “too big to fail.”
“There is evidence of deep-seated cultural and ethical failures at many large U.S. banks. Whether this is due to size and complexity, bad incentives, or some other issues is difficult to judge, but it is another critical problem that needs to be addressed.” He continued, saying many large financial institutions display an “apparent lack of respect for law, regulation, and the public trust.” Dudley called for a “cultural shift” at the Big Banks to restore public trust in the industry, saying, “Tough enforcement and high penalties will certainly help focus management’s attention on this issue.”
Dudley’s comments come as the world’s biggest banks collectively face tens of billions of dollars in potential fines and penalties stemming from alleged laws broken in areas ranging from home mortgages to manipulation of interest rates and currencies. With many of the “Big Banks” continuously demonstrating their contempt for the consumer, why would you entrust them with what could be the biggest financial decision of your life?
Entrust your mortgage ONLY to a competent, qualified, and Certified Mortgage Planning Specialist® with a proven track record. By consulting with me well before you find your new home, we can ensure the mortgage matches your needs, complements your financial plans, and helps you attain your financial goals.
At Mortgage Wealth Advisors, we’re originating and closing loans, quickly, efficiently, and on schedule. We are surpassing the expectations of our borrowers, Realtor partners, and referral sources. And guess what? The rates and fees you’ll receive are probably about the same as if you went to “Your Bank.”
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.