Lenders and mortgage brokers

Since the real estate shake out, the world of lending has changed tremendously.  Previously, everyone was a mortgage broker or “mortgage banker” if you were high-falutin.

Storefronts for independent mortgage brokers opened faster than Budweiser stand at a NASCAR race - appeared faster than ice cream trucks on a sunny day.

Since that time, there has been a contraction in the number of lenders (Countrywide being purchased by Bank Of America, for example), increased regulation of individual brokers and a drop in the number of mortgage applications. This has had the combined effect of forcing many people from this  industry.

As a group, lenders suffer from a lack of transparency; unlike real estate agents, they have a less of a public presence (no pictures on billboards) and tend to work behind the scenes.

Many lenders and mortgage brokers get referrals from real estate agents, rather than directly from potential clients. Working with a lender/mortgage broker recommended by your real estate agent is not necessarily a bad thing. Real estate agents have an obvious interest in seeing a transaction close and increase their odds by working with mortgage brokers who have a track record of getting deals funded.

Before, the economic reset, having transaction close successfully this was less of an issue, however, with tighter underwriting and appraisal standards, working with someone who can get a transaction financed is now more important than ever.