Mortgage Brokers Versus the Banks

Mortgage Brokers are dropping off in their droves as the market for loans generally decreases across the world with the financial crisis.

But that is not the only reason for mortgage brokers seeking new careers or in many cases returning to the banks where they used to work in an effort to keep their own mortgage payments going and food on the table for their families.

Fifteen years ago the mortgage industry was just getting going and as the choice of Bank loans for consumers broadened as many banks from overseas expanded across the globe seeking new customers.

This was great for the mortgage brokering industry because it meant brokers could offer client's loans at a lower rate as the overseas banks were not paying for local branches and staff.

Some people were hesitant at first but as the internet and online banking systems picked up, customers were not fussed if they didn't deal directly with a branch as long as they had their mortgage broker to call on if they had a enquiry.

Brokers were now using interstate or overseas banks for up to half of all their loans for consumers and taking away business from the big banks.

But after the Sub prime collapse many of these banks scaled down their staff or closed completely as relaxed lending strategies cost them, as too some brokers had knowingly allowed borrowers to borrow more money than they could ever pay back.

Now the banks that are left are blaming brokers and are fighting back with their own strategies to win back old clients.

The banks themselves have increased and extended operating hours, hired mobile lenders, increased commissions to their own staff for acquiring new loans at a branch level, and have highly trained retention staff to make sure any customers they do have do not go elsewhere.

Brokers cannot compete with multi million dollar advertising campaigns.

They also are having their approvals delayed by the banks in an effort from the banks to get the clients upset so the client goes directly to the bank and gains approval within a few hours rather than waiting weeks.

No matter how high the level of service Mortgage brokers provide they are like "David and Goliath" except in this case Goliath has more money to throw around!

It Goes without saying that most Mortgage brokers provide a higher level of personalised service to their clients,and have more products to choose from.

However they still rely on the big banks to approve their loans and why on earth would the banks want to pay the brokers anyway, seeing as brokers have taken so many clients from them in the past!

Meanwhile various institutions and organisations are still training new Mortgage brokers each month to replace the old ones who have left the industry, so the broker merry go round continues as more people believe they can provide a superior service to the last brokering company?

After 20 plus years in Sales and management roles I then spent 5 years in the Mortgage Industry both as a Mortgage broker and a financial coach. I Provided hundreds of clients with great service, advice on investment properties. Mortgage reduction, budgeting and many other Facets.

I have been involved in many charitable organizations, hosted presentation events, compered motor racing events and awards nights and have starred in television commercials and have been a magazine contributor and photographer.

http://www.newdaytoprosper.com/brokers