April 11th, 2012 5:14 PM by Gregg Mower
Well just as we thought the small mortgage brokerage shops were done a new niche has opened for them. It seems with all the rules and regulations that have been imposed on the mortgage industry over the last several years it was looking like the local mortgage broker was on the way out of the mortgage delivery system. Then HUD who oversees FHA announced that they would allow mortgage brokers to originate FHA loans it came as a surprise to the industry. About this time loan officer licensing came into play, then loan officer compensation reform hit the industry so it still was looking rather bleak for the traditional Mortgage Broker. Now that the onslaught of rules and regulations from Big Brother has slowed to a dull roar it has provided a vision through the smoke if you will to see that the Mortgage Broker has a niche and rather good for that matter.
Traditionally the mortgage Broker shops were small and local, that provided for Loan officers to serve the local markets where the big banks could not. It appears this is looking like the new trend as the big banks can’t serve their own customers in a timely manner and big Mortgage Bankers that have arisen from the consolidation of the industry are having the same delivery problems as well as the lack of local underwriters to underwrite mortgage product. The mortgage broker can find those sources that will provide great pricing and great service levels for local clients. The consumer has been the loser in all of this regulation over the last several years in that they have to provide for more documentation and get less service from the dwindling pool of loan originators available to write the loan for them. With this knowledge it is possible to provide a service for the consumer that actually takes their best interest into consideration (novel concept).
The Mortgage Broker was blamed for the mortgage industry debacle of the last decade, and has been on the down low since. It is looking like the consumer will once again be served by the small local guy or gal that can walk the client through the painstaking process of obtaining a home loan in today’s market.