Before the Great Recession and housing market crash, mortgage brokers at their peak accounted for two-thirds of all mortgage originations in the United States. Yet, while mortgage brokers were serving their communities by closing more loans than banks, after the crash, the too-big-to-fail banks were bailed out with taxpayer dollars, while most of these mortgage brokers, small, independent community businesses, were forced to close.
However, for the past several years, mortgage brokers have been making a comeback. According to numerous articles published by industry periodicals such as Mortgage Professionals of America, National Mortgage News, American Banker, and the National Association of Mortgage Professionals, the number of friendly neighborhood mortgage brokers in the United States has been growing; and they’ve been clawing back their larger share of the originations pie! The ‘Big Box Banks’ have been losing market share to local professional loan originators employed by small, home-town mortgage brokers.
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. (One need only point to the numerous bank scandals in recent years where banks were fined and censured for creating fraudulent sales and accounts to unsuspecting consumers, simply in order to meet bank-imposed quotas.)
- For a loan officer to take a loan application without truly knowing the borrower is akin to a physician diagnosing without a patient interview, exam, 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!
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, The Daily News, Anton Press, 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.