{"id":10856,"date":"2010-01-14T18:35:58","date_gmt":"2010-01-15T01:35:58","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=10856"},"modified":"2010-01-14T18:44:10","modified_gmt":"2010-01-15T01:44:10","slug":"2010-mortgage-broker-renaissance","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10856\/2010-mortgage-broker-renaissance\/","title":{"rendered":"2010 Mortgage Broker Renaissance"},"content":{"rendered":"

Is the business of broking mortgage loans dead?\u00a0 About two years ago, Morgan Brown predicted our demise on Blown Mortgage<\/a>.\u00a0 His conclusion was that the industry would need a scapegoat for the poor lending practices and that “blaming” mortgage brokers was convenient (and not necessarily fair).\u00a0 His conclusion suggested that the big lenders were trying to gobble up market share to the detriment of the consumer.<\/p>\n

Morgan predicted that the brunt of the regulatory changes would be aimed squarely at the mortgage broker; he was correct<\/a>.\u00a0 He predicted that the big lenders would tighten up their standards and practices in the wholesale lending channel; he was correct<\/a>.<\/p>\n

That scheme backfired on the big banks. <\/strong> Congress is really pissed that they haven’t been doing more with the TARP funds <\/span>federal largesse to make loans and they are coming down hard<\/a> on whom President Obama calls the “fat cat bankers on Wall Street”<\/a>.<\/p>\n

Bawld Guy Axiom<\/strong>:\u00a0 Lenders Lend<\/a><\/p>\n

Brady Corollary<\/strong>: Lenders lend unless it’s more profitable to do something else.<\/p>\n

Government-subsidies proved that in 2009<\/a>.\u00a0 The TARP funds allowed big banks to borrow money at a ridiculously low cost-of funds.\u00a0 The government guarantee on all agency products indemnified those big banks from losses.\u00a0 Essentially, the big banks could buy their product\u00a0 (a dollar) for $1.01 and sell it for $1.05; that’s a 500% markup<\/em> and a helluva business.\u00a0 It would be natural for them to “crowd out” mortgage brokers, through poor pricing and horrible service, to benefit their retail lending channel.<\/p>\n

Here’s what those big banks didn’t expect:\u00a0 public outrage over bonus pay<\/a> and a proposed “windfall profits tax” <\/a>on their guaranteed profits.\u00a0 While I hate excessive government interference, you gotta wonder why the bankers thought they could get paid like Gordon Gekko<\/a> as wards of the Government.\u00a0 One would think they’d lay low at a GS-15 salary, for a year or two, after they repaid the TARP money.<\/p>\n

The profits party is over for bankers and now they have to EARN those bonuses.<\/p>\n

Guess what they’re doing?\u00a0 They’ve turned to mortgage brokers again as a viable loan delivery channel. <\/strong> How do I know this?\u00a0 The biggest banks (Bank Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Is the business of broking mortgage loans dead?\u00a0 About two years ago, Morgan Brown predicted our demise on Blown Mortgage.\u00a0 His conclusion was that the industry would need a scapegoat for the poor lending practices and that “blaming” mortgage brokers was convenient (and not necessarily fair).\u00a0 His conclusion suggested that the big lenders were trying […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[251,26,5],"tags":[],"class_list":{"0":"post-10856","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","7":"category-lending","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2884,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2884\/zillowcoms-long-awaited-mortgage-lending-service-to-offer-anonymous-customized-loan-quotes-to-consumers-affording-loan-originators-the-opportunity-to-compete-transparently-for-free-mortgage-leads\/","url_meta":{"origin":10856,"position":0},"title":"Zillow.com’s long-awaited mortgage lending service offers anonymous customized loan quotes to consumers, affording loan originators the opportunity to compete transparently for free mortgage leads","author":"Greg Swann","date":"April 2, 2008","format":false,"excerpt":"Seattle-based real estate start-up Zillow.com tonight releases its long-anticipated mortgage lending product. We've known for nearly a month that Zillow's offering would include working loan originators in some fashion. What becomes clear tonight is that Zillow will basically be acting as a hands-off intermediary between mortgage-seeking clients and loan originators.\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1356,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1356\/subprime-loans-disappeared-learn-how-to-be-a-hard-money-loan-broker\/","url_meta":{"origin":10856,"position":1},"title":"Subprime Loans Disappeared? Learn How to be a Hard Money Loan Broker","author":"Brian Brady","date":"April 27, 2007","format":false,"excerpt":"Loan originators who have based their business on subprime mortgage products have been feeling the pinch in 2007. Private mortgages or hard money lending may be the solution to your problem. Four originators gathered with three hard money lenders in our podcast. The Lenders: Mitch Zeichner (310) 948-2622 Mitch represents\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17922,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17922\/mat-ishbia-draws-a-line-in-the-sand-do-business-with-rocket-mortgage-and-you-wont-do-business-with-uwm\/","url_meta":{"origin":10856,"position":2},"title":"Mat Ishbia draws a line in the sand; do business with Rocket Mortgage and you won’t do business with UWM","author":"Brian Brady","date":"March 4, 2021","format":false,"excerpt":"The dynamic CEO of United Wholesale Mortgage, Mat Ishbia laid down an ultimatum to the mortgage broker channel today.\u00a0 Ishbia said, in a conference call with members of the Association of Independent Mortgage Experts (AIME), that mortgage brokerages who choose to fund loans through Quicken's Rocket Mortgage will no longer\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":975,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/975\/bank-relationships-vs-mortgage-brokers\/","url_meta":{"origin":10856,"position":3},"title":"Bank Relationships vs. Mortgage Brokers","author":"Cooksquared","date":"January 31, 2007","format":false,"excerpt":"Every property I have ever purchased has been with the help of a mortgage broker. After my recent trip, I have started to wonder why this is the case. The obvious answer is simply their access to cheaper capital. Brokers can secure rates 50 to 100 basis points (.5%-1%) lower\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1745,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1745\/can-i-still-get-a-mortgage-in-todays-lending-markets-with-cold-hard-cash-and-great-credit-certainly-otherwise\/","url_meta":{"origin":10856,"position":4},"title":"Can I Still Get a Mortgage in Today’s Lending Markets? With Cold Hard Cash and Great Credit, Certainly; Otherwise…","author":"Cooksquared","date":"August 4, 2007","format":false,"excerpt":"On Friday, August 3rd American Home Mortgage officially closed its doors. That same week Standard & Poor's cut its outlook on Bear Stearns from stable to negative amid fears of firm wide exposure to subprime lending and the leverage finance market. If all that were not bad enough, the leveraged\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3874,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3874\/a-proposal-to-improve-mortgage-lending\/","url_meta":{"origin":10856,"position":5},"title":"A Proposal to Improve Mortgage Lending….","author":"Tom Vanderwell","date":"August 13, 2008","format":false,"excerpt":"Since there are a variety of licensing, regulation, education, criminal background check proposals bouncing around in an effort to clean up the mortgage world, I thought I'd throw out my own proposal on how to improve mortgage lending. I'm proposing that as part of the training for becoming a mortgage\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=10856"}],"version-history":[{"count":12,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10856\/revisions"}],"predecessor-version":[{"id":10868,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10856\/revisions\/10868"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=10856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=10856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=10856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}