What is the state of the home finance industry? In specific, what is the state of mortgage brokering in the US? For those that are not familiar with mortgage brokering, the term, in general, is self-explanatory. A mortgage broker is a licensed agency that serves as a middleman between potential homeowners (borrowers) and lenders.
When you work with a qualified mortgage broker, they can make the task of securing the necessary financing to purchase your new home a lot less stressful. At the same time, they can connect you with the most advantageous loan for your particular situation.
Or, on the other hand, if you find a less credible mortgage broker, you can find yourself caught up in the vortex of the worse nightmare of your life. You can easily find yourself paying exorbitant interest rates among with other subpar lending practices.
Before the collapse of the real estate market due to poor lending practices, mortgage brokers came a dime a dozen. There were some great brokers that did spectacular work to provide the best possible situation for their clients. Unfortunately there were also brokers that placed their clients in terrible situations that contributed to the collapse of the industry.
Now, the subsequent ramifications of the practice by both brokers and lenders that led to the collapse in 2007 are now threatening the mortgage brokerage industry. Stricter regulations that limit the broker’s abilities to collect fees will probably push many brokers out of the business. For instance, the regulations prohibit brokers from getting paid for placing their clients in more expensive loans. It also prohibits brokers from getting compensated by both the lender and the borrower.
What this means for borrowers is fewer mortgage brokers and a less competitive market always impact pricing and customer relations.
If you’re in the process of buying a home and want to work with experienced mortgage brokers with a track record of high integrity, call us at: 803.765.1680, or toll –free at 800.854.9484.