Death of the Mortgage Broker

Traditionally one of the best ways to get a competitive mortgage is to use a broker to find the best deal. But recently many banks are cutting out the middle man and handling the mortgages in-house. Are mortgage brokers a dying breed?

“Right now, nowadays I’m working twice as hard as I used to. Making less money than I used to. Really the harder part of my job nowadays is earning that client’s trust.”
-Gary DelGreco, Mortgage Banker

While Gary DelGrecco is still in the lending business, he’s no longer a traditional mortgage broker: someone who represents lots of lenders and helps consumers find the best deal.

What’s happened to the mortgage brokers? Well some lenders have slowed or entirely stopped working through them entirely. So if you want their money, you can’t go to a mortgage broker you’ve got to deal direct with the lender.

But that’s not the only thing behind the decline of the mortgage broker.

“They have to feed their family and that’s the bottom line. And when you can’t help people, when there’s nothing to offer them, you have to switch industries. That’s the bottom line.”
-Gary DelGreco, Mortgage Banker

Of course, not all lenders are refusing to work with brokers and not all brokers have bitten the dust. Their numbers are down about 33%. So there’s still a viable option for many people looking to buy or refinance a loan.

“I’m the good guy. I’m trying to get this done for you. I’m out there looking out for you trying to get your situation fixed and trying to get your rate lowered. Mortgage Brokers are alive, but it’s just that there’s less of them around.”
-Gary DelGreco, Mortgage Banker

Just be aware that brokers may be a little harder to find these days and those you do find may have fewer choices on loans. So that makes it more important than ever to shop around.