The End of Brokers?

I had the opportunity to meet with a senior manager for one of the largest wholesalers a few days ago. He met with a group of brokers and updated us on the industry and his company. He also solicited feedback from the attending brokers. One of the consistent themes throughout the conversation was treatment of us mortgage brokers over the last several months. It seems many are ready to blame the financial crisis on us. Obviously, this approach frustrates me as most of us simply sold the programs which were offered to us. We didn’t commit fraud. We didn’t misrepresent. We conformed with the program guidelines and very effectively sold the aggressive programs developed by the lenders. Over the last several months, I’ve been worried about the future of the broker industry. Every time we turn around, someone is making it more difficult to do business as a mortgage broker.

We posed the question as to the future of the mortgage broker. Finally, we received some positive feedback. The large wholesalers are experiencing outstanding returns on the third party origination business. The performance of the loans is excellent. The two largest originators nationally are most likely the largest due to their broker business. The lenders are again realizing that, if done properly, broker business makes sense. As the executive put it, the brokers are no longer the poster child for the mortgage crisis. As warehouse capacity increases and the industry stabilizes, mortgage brokers should be able to continue effectively serving the borrowers who have come to rely on our expertise, experience, and relationships.