Why A Mortgage Broker/Banker is Better Than a Bank

Most people think that they will get the best rate and offer from one of the “Too Big To Fail” banks, you know the ones I am talking about. The ones that say that they put the customer first. But have recently paid tens of billions in fines for abusing their customers with regards to the origination of their mortgage, or servicing of their mortgage with robo-signing. And another one of the “Too Big To Fail” banks was slapped with a huge fine for discrimination against minority borrowers.

When you deal with the “Too Big To Fail” banks unless you have in excess of a million dollars in their bank you are really nothing more than a number, just another transaction for them. Because of their size they have to be volume producers to justify their overhead, typically that means poor customer service. In addition, more often than not it means a very long time from the day you apply for the mortgage until final mortgage approval.

“Loan Officers” at the “Too Big To Fail” banks do not have the same education requirements as mortgage bankers and brokers are required to have. In many instances being a mortgage “loan officer” at the “Too Big To Fail” banks is just a platform to work their way to a higher position in the bank.

Each “Too Big To Fail” bank also has just one line of products to provide you, their own. If you don’t fit in their “box” they cannot look to outside resources to accommodate you. In fact JP Morgan just eliminated 22 of their 37 mortgage products. That also means they can only offer you their rate, they cannot shop for the best rate for you.

Lastly mortgage origination is just a piece of their business. They have several other profit centers and business lines to run such as deposits, investment, commercial banking etc. They have some many parts they cannot give all of their attention to just the mortgage department.

On the other hand, mortgage brokers and bankers are entrepreneurs that truly care about their clients and are dedicated to providing outstanding customer service. Rarely will you see huge fines imposed on mortgage brokers and bankers for client abuse or discrimination.

Mortgage brokers and bankers are typically small to medium sized companies whose only line of business is mortgage origination. That means they are motivated and have the ability to get your mortgage closed not only faster than the “Too Big To Fail” banks, but get in closed on time. That’s paramount especially on a mortgage for a home purchase.

Mortgage Loan Originators at mortgage brokers and bankers have chosen the mortgage business as their career, they are not using the position for advancement. That means with them in it for the long-haul you as the client will be able to have that same person handle your mortgage needs time and time again. You will have a professional relationship with them just as you do with your physician, attorney, or CPA.

Mortgage bankers and brokers have relationships with multiple lending sources and investors. It is a one-stop shopping for all product types. It also means they can shop for the best rate amongst their sources.

Finally, mortgage brokers and bankers have just one line of business, and that’s the mortgage business. They have to get it right every time. They don’t have other lines of business to “bail them out” if they perform poorly.

The bottom line is if you want great customer service, an on-time closing, the best selection of products, and the ability to find the lowest rate – you should use a mortgage broker or banker for your mortgage needs.

 

 

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