Monday, September 10, 2007

Broker or Lender? are you kidding......

Unless you have been hibernating for the past few months, you are aware of the ongoing subprime loan crisis. The ripple has crossed into good credit markets, hitting rates hard, especially jumbo loans - (loans over $417,000). This crisis has almost single handedly eliminated a lot of other "niche" programs (Alt A loans) especially no doc and stated income loans. A question that must be raised is am I safer with a broker or lender?

To answer this question you must understand the differences. I experienced a perfect example last week while shopping for life insurance. My insurance broker input personal information into the computer and in seconds I was supplied with 10 different quotes from major rated companies. Now if I was to call one of the larger companies I probably would have received one quote. I am not sure if this is good or bad but in my opinion the true value of the broker was choice and expert knowledge of different programs available.

Open Mortgage offers similar choices while acting as a mortgage broker. Utilizing relationships with most, if not all of the top rated investors in the industry, we have become experts at where to place loans. We know the real ins and out of the secondary market and this proves to be a value added for our clients. The last thing anyone wants is a deal to die at the table because the investor pulled the plug.

Sure, we can act like a lender and offer one line of products, but why? In these tough financial times, when every deal counts, partnering with mortgage bankers that can offer high quality advice is essential.

You have questions? We have answers - as always, we are here to help.

Lewis Poretz lewis@openmortgage.com
President
Open Mortgage
http://www.openmortgage.com/ 877-345-OPEN

posted by Lewis Poretz  # 9/10/2007 09:13:00 AM

Comments:

This is really interesting. My son sells real estate in Atlanta and he says that every other person asks him how all of these lending problems will affect borrowers. How about writing about the effects of all this on the average mom and pop buying their first or fifth house?
# posted by mshaw : October 3, 2007 6:51 AM  

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