According to a recent article in Mortgage Professionals of America Magazine (October 2014), the nation’s biggest lenders are still seeing their mortgage business drop.
Between the first quarter of 2013 and the first quarter of 2014, Quicken Loans, Bank of America, PHH Mortgage, and Citibank all saw significant declines. JPMorgan Chase saw its volume drop by more than half. Wells Fargo, the nation’s largest residential lender, saw its volume drop by nearly two-thirds! And the second quarter statistics look equally dismal.
Yet over the same period, local mortgage bankers and brokers saw their volume hold steady – and in many cases even improve! Why do you suppose borrowers are flocking away from the ‘Big Box Banks’ in favor of local professionals? There are numerous reasons:
- The corporate cultures at these ‘Big Box Banks’ are still one of selling product (in this case, mortgage loans) rather than helping clients achieve their financial goals and housing dreams. Their loan officers tend to be unlicensed, with less training and education than many of this industry’s true financial professionals.
- Their boiler-room business models promote selling as many loans as possible, rather than getting to know the needs of their borrowers. And if you think ‘Your Bank’ truly cares about you, you’re sorely mistaken. Despite their advertisements, bank culture is not about the consumer; it’s about volume and profit.
- More applications without truly knowing your borrower is akin to a physician diagnosing without a patient interview or diagnostic tests. It’s financial malpractice, plain and simple.
- Since most banks and loan originators don’t build relationships with their customers, how can they possibly help you choose an appropriate financial product when they never take the time to get to know you, your financial concerns, and your financial goals?
Don’t entrust the biggest financial decision of your life to some bank representative looking to sell you a mortgage. The days of “mortgage salespeople” are over.
By working with Mortgage Wealth Advisors, we’ll ensure your mortgage complements your financial needs today, while helping you attain your financial goals tomorrow. Your transaction will go smoothly. Your loan will close.
And guess what?
The rates and fees you’ll receive are probably 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.