SUPPORT YOUR LOCAL MORTGAGE BROKER in 2011. In the interest of keeping the competition alive, I encourage you to talk with your local mortgage broker when you are shopping for a home loan. Or if you are a Realtor speak with local brokers to see what they may offer your buyer when you start referring sources for funds.
I say this because (a) I'm a mortgage broker and (b) because so many mortgage brokers have left the business in the last couple of years. Ours is really a supply/demand business. If the lenders do not have competition, there is no reason to offer the best rates or best service.
I hear consistently these days that 2011 will be a better year for brokers who are left standing because so many have left the business. Unfortunately, the flip side of that is that with dwindling numbers it could make the few left more vulnerable to extinction.
Brokers have withstood so many changes in the last year or so. Just the fact that they are still standing is a testiment to their resiliency and determination. I was listening to a video on you tube today as it wound through the explanation of changes that have taken place. With licensing, background checks, testing and increased fees it has been a difficult time for mortgage brokers. In April the compensation rules will change. Will it be a final nail in the coffin? I hope not!
Generally a mortgage broker has the ability to deliver a product tailored to the borrower's needs and my experience is, at a competitive price and usually with superior service. So, I say, give your local broker a chance. You should find him/her anxious to answer your questions and you'll be keeping the competition alive!
