â€œIn the wake of the global financial crisis, a number of regulators and a number of congressmen really identified brokers as the bad guys in that whole equation,â€ Washington Post writer Kenneth Harney said. â€œ...I remember sitting down with (former Massachusetts Rep.) Barney Frank on more than one occasion and him saying to me, â€˜Community bankers -- good guys. Brokers -- bad guys.â€™ Yes, there were a number of brokers involved, but theyâ€™re not in the industry anymore as far as I can tell. ... Continuing to punish brokers for the perceived sins of the past is just unfair in my point of view.â€
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Speaking last weekend at the National Association of Mortgage Professionals (NAMB) national conference in Las Vegas, Harney said the much-maligned mortgage broker is still the best option for many borrowers searching for a loan.
â€œI have found as a consumer I get a lot more out of a good broker than Iâ€™m ever going to get out of a retail loan officer at a big bank,â€ he said. â€œThe brokers I deal with are basically small businessmen. They survive on their reputation, on word of mouth. ... The broker model allows consumers to â€˜shopâ€™ without themselves having to shop.â€
One issue facing brokers, according to Harney, is that most borrowers simply donâ€™t know the difference between a broker and the loan officer at their local bank.
â€œThere's no question that brokers bring a whole lot to the table. There's no question that the model is important,â€ Harney said. â€œBut the responses I've gotten from recent columns make it clear to me that the borrowers out there really don't know how to find you. ... There's just a huge lack of understanding about brokers.
â€œWhat that says is that there's a huge need for branding here,â€ he said. â€œI think people, when they see the facts of your model, the facts of your business, really like it. It would be a whole lot better if people actually knew how to find brokers. ... Somehow, the word has to get out that brokers are different than bankers.
In addition to traditional advertising, Harney suggested that brokers harness the power of social media outlets such as Facebook and Twitter.
â€œMy view is that brokers tend to be problem solvers, and here's a problem -- getting the word out: â€˜Here's who we are,â€™â€ he said. â€œIf you solve the branding problem, I think it will help to solve other problems.â€
NAMB President Don Frommeyer said that the most important part of branding was defining the differences between brokers and mortgage bankers and loan officers.
â€œI think for the most part, most mortgage brokers are branding themselves,â€ Frommeyer told MPA. â€œThe tough part about it is trying to differentiate between a broker and a banker, and the fact that they have different rules. â€¦ You and I both know that most times, the brokerâ€™s going to give a better deal than the bank. But it is a competitive market, and branding is very important.â€
Frommeyer stressed that brokers should explain clearly exactly what they offer that a bank canâ€™t. â€œAs a broker, Iâ€™m licensed. I do continuing education â€“ whereas a bank officer isnâ€™t that way,â€ he said. â€œ(Customers) might say, â€˜Well, a bank can give me this, a bank can give me that.â€™ Well, I can give you service. They have one program; I have 23 different programs. You have to educate the consumer.â€
If you want, I have some good people you can get quotes from to see if you like them.
Obtaining a mortgage is a lot like buying a car.....By limiting your choices you are likely not going to identify your best product and value. Our recommendation is to always "kick some tires" before making a decision......remembering it isn't always the "big names" that offer the best product. Make yourself informed.
If you want someone who is local, reputable and can guide you through the mortgage process from start to finish give me a call. Read my profile and that's all you need to know.
I will not badmouth Wells Fargo on a public website, nor will I suggest that using a mortgage broker means paying higher rates and fees. That is complete hogwash. I do know that I do many things that some other lenders do not.
I am available by cell any time and always quick to respond.
I have taken in home applications.
I keep my clients informed throughout the process and I manage their expectations. If you know what to expect, there are no surprises.
I have several sources for my loans which sometimes means more flexible underwriting
I have knowledge and experience to make sure my clients don't make dumb mistakes and get their loan denied.
I attend my settlements so that I can go over the numbers and make sure there are no errors.
Feel free to go elsewhere if you don't think these qualities are important.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960