What is Happening in the Mortgage Market

As a mortgage banker it has always dumbfounded me as to why people assume their personal bank is the best resource for a mortgage. Do they do this for convenience, routine or because they believe that since their checking and savings accounts are with a bank, it automatically qualifies them for a better deal on the rates and fees?  As a direct lender and mortgage banker I can tell you from experience, this is rarely the case. I have purchased 7 homes in my life and never has my personal bank offered me the best mortgage option.  The following are some of the reasons you should consider a local mortgage banker, such myself with Envoy Mortgage, for your home purchase or refinance transaction. 

Did you know that at the banks a mortgage specialist is not required to be licensed?  Think about it, do you want one of the largest investments you will make handled by an individual with no federal or state required licensing or education?  A bank mortgage person has been assigned to your file by the luck of the draw.  The bank mortgage specialist will take a loan application and then transfer it to another individual called a processor to collect your documentation, who is likely in another town. Then the processor deals with an underwriter that is commonly in another office.  This makes it difficult when there are questions after hours or on weekends that just can’t wait. Much of the banks loan officer business just walks in the door from checking and savings account holders.  They have little incentive to provide exceptional service as there are lines of people at the bank doors and call centers waiting for their turn.  To bank mortgage persons’ defense, they have little control any way.  Banks in their efforts to increase profit margins often “centralize” processing in two or three offices across the state or nation.  This is not always the case but most likely is.

Mortgage bankers are required to complete a comprehensive back ground investigation, mandated training courses and continuing education to maintain a license.  Mortgage bankers are registered and issued a license number which is searchable by consumers at the Nationwide Mortgage Licensing System and Registry.  Most mortgage bankers have 5 to 20 files working at the same time with the processing team working in the same office just steps away from one another. This ensures your transaction will get the attention it deserves.  When a question comes up, they typically know every detail of each transaction.

Most mortgage bankers work by referral only or self generated business. Business is derived from people who know them.  Clients have either been referred by a previous client, or have researched, interviewed and chosen them.  If the mortgage banker does a good job, people with tell their friends and family – if they do not do a good job, people tell EVERYONE.  So in order to earn a living knowledge and excellent customer service is a must.

Mortgage Bankers take the loan from start to finish. Clients have one point of contact with the local office that is handling their file. Calls and inquiries are addressed and returned promptly.  It is not uncommon for a mortgage banker to give out personal cell phones numbers so clients can reach them after hours.

Mortgage Bankers depend on happy mortgage clients and not deposits, credit cards and car loans.  They tend to run very efficient offices without the high overhead of the banks and can therefore pass along the savings to their clients. There are literally thousands of variables that can affect the outcome of your mortgage transaction. That's why you need a mortgage banker to act as a liaison between the title and escrow company, real estate agent, appraiser, credit agency, the underwriters, the processors, and any other services which may affect your transaction.  A knowledgeable, experienced mortgage banker will know the pitfalls before they become issues and will be able to navigate the sometimes tricky path to home ownership.  You are not just a bank account number - you are a client for life!