A recent LinkedIn post authored by the former president of the Mortgage Bankers Association, David Stevens, called for all mortgage lenders to join forces to serve the common needs of many potential homeowners as possible. We at the Association of Independent Mortgage Experts applaud this public call to action and we agree all lenders should join forces to be Independent. Together.
Even as recent data suggests, more loan officers will move into starting their own independent mortgage broker businesses, as it’s important they are received into our community with open arms, without alienating other lending channels. But the challenges facing the modern mortgage lending business as a whole cannot be ignored, especially for those companies that would seek to enrich their own operations above that of the aforementioned doctrine most of us seek to uphold.
Indeed, those lenders must be confronted, on behalf of not just those joining the mortgage brokers’ ranks, but those who have long chosen to be a mortgage broker as a career, or even a way of life. Recent news events further indicate a need to confront the challenges that are facing the modern mortgage lending market. And there are opportunities for mortgage brokers to really make a difference in today’s market. That’s not just lip service, that’s a promise.
Recent statistics from the Census Bureau indicate that homeownership among certain communities of our fellow Americans is on the decline once again. For the most part, large mortgage lending firms do very little to combat this decline, for if they did, we would see a more positive result from the Census Bureau study. That’s not to say nothing is being done, rather to say all of us, as mortgage lenders, can do more to serve low-to-middle income communities, regardless of racial affiliations.
In her opening remarks at a recent Urban Institute sponsored panel on the homeownership gap [Watch, here], Alanna McCargo, Vice President, Housing Finance Policy Center, described the disparaging rate of homeownership in the following statement: “This is not just a national housing crisis, this is a local housing crisis.” We agree and add that great change can come from confronting great challenges, especially inside America’s communities who need our help the most.
To be honest, it’s difficult to look at the news cycle and not be somewhat cynical about the modern market. Recent joint ventures by top firms, specifically the partnership between Quicken Loans and State Farm, appear better suited to serve premium borrowers, and charge premium prices for the services. But how about serving the nation? Sadly, most joint ventures and tech advancements care more to enrich the retail mortgage sector further, despite the alienation of entire sectors of potential borrowers.
The threat is clear: These institutions seek to commoditize the mortgage lending experience. They wish to make the process easier for themselves, mainly, so that they can get borrowers into a financial cycle they can control. The borrower may experience an expedient process but doesn’t understand the mortgage process any more than when they began. That’s not good.
How do we at AIME know that this data and these relationships are connected? Our members see it every day. Mortgage brokers work within their communities. They aren’t at a distant call center or a virtual helper; we are the boots on the ground. And as long as a single American goes underserved by the mortgage lending market, we must continue to confront the challenges facing the mortgage community.
What we’re seeing with these developments in the markets, is that the big players are looking to get bigger by providing a one-stop buying experience for a very captive consumer base. Unfortunately, with these companies wielding some of the biggest advertising budgets, it’s harder for competition to position itself in front of potential homeowners.
These developments should not only put the mortgage industry on notice, but also the real estate industry as well. At AIME, we simply cannot brush these headlines off as nothing to worry about, as it’s a real threat to our line of business, one that seeks to create a level playing field to empower both Realtors and consumers to make the best decision when financing home loans. Furthermore, we endeavor to extend that playing field so that each and every hardworking American at least can show up to the game we call “fighting for the American Dream.”
