Blog Category: direct lender

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Are Banks Too Big To Fail? Or Simply Too Big To Work With?

There are some banks deemed too big to fail. Those are the ones that have been the recipient of much taxpayer benevolence. Whether you agree with that or not my contention is that big banks and most big institutions are simply too big to work with. Most large entities do not work well. Once you scale something up to a certain size it seems impossible to make it function well. Read More

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Long Wait To Refinance

Mortgage pipelines are backlogged thanks to record low rates. And rates simply keep breaking new records. This has created delays for many consumers trying to take advantage of low mortgage rates by refinancing. Customers of big banks report that they are unable to get a call back. One bank told a client that they would return the client’s call in 2-3 months! Read More

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What Is The Difference Between A Direct Lender, Mortgage Broker And A Bank?

What Is The Difference Between A Direct Lender, Mortgage Broker And A Bank? The way that a mortgage lender is structured is critical in the current mortgage environment. One structure that is getting a lot of attention is direct lenders (aka mortgage bankers). What that means is that the lender is allowed to do the appraisal in-house. They also control the underwriting in-house. And preparation of the closing documents. You could say they operate as if they were the bank. Further, Read More

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Where To Get The Best Service In The Mortgage Industry?

I have cited a thorough and expensive research study several times recently in other blog posts. One message I have not relayed that comes from the data in that study is how poorly the big banks are at execution when it comes to doing mortgages. I will cut and past comments directly from the study that quotes numerous Realtors. I will let their comments speak for themselves. Consumers deal with mortgage transactions once every 3-7 years. But Realtors deal with loans every day. Their opinion is the most valid, unbiased and relevant. I have heard a lot of reasons as to why a homebuyer thinks its best to get a mortgage from a big bank. All of them are wrong headed.

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