It has been interesting to see the shift in the marketing since the housing crisis of 2008, because new rules and regulations have been passed to protect the consumer from risky mortgage loans. After the meltdown, many of the mortgage brokers were blamed for the problems that happened, and since then there has been a stigma about working with a “broker.”
The brokers ended up being the scapegoat for many of the issues in the mortgage industry, both in the eyes of the consumer as well as some of the bigger banks that tried to pass the blame and responsibility onto the brokers for the problems.
Why the Names are Changing
Because of this stigma, brokers have started changing their names to try to get rid of the negative connotation associated with their title. Many of them are substituting “professional” instead of “broker,” and other common terms now include “mortgage planner,” “mortgage advisor,” “mortgage specialist,” or “mortgage professional.”
Even though this stigma is the reason that some brokers have chosen to switch names, there are other reasons that have also impacted their decision. For example, some groups, including state associations, have evolved so that they now include other mortgage originators.
Will Your Name Change?
Are you one of those brokers that are jumping on the bandwagon to change your name? Some people are simply making a change to their name, while others are changing their business in order to accommodate different relationships with different types of lenders.
One example of this change in focus is the situation where a broker is in more of a correspondent role, working with warehouse lines and independent investors to fund loans. This change in business model can be beneficial because they are able to use their own name on the loans, instead of using the lender’s name. But, there are some rules and regulations that need to be followed, so it’s important that you understand the pros and cons of making this change before you decide if it’s the right move for your company.
With any name change, or major change in your business model, it’s always a good idea to first consult with an attorney before you make the move. Work with an attorney who is familiar with mortgage law, because it can make a difference in the quality of legal advice that you receive. There are so many nuances to mortgage law, that a general attorney won’t have the experience or understanding that a specialist can bring to the table. So, instead of choosing any local attorney, look around to find an attorney focused specifically on mortgage law.
If you are looking for assistance with Denver wholesale lending or any other type of mortgage, then it can be very beneficial to have someone on your side, helping you to understand the things that need to be done in order to remain compliant. You don’t have to navigate through these tricky situations on your own, so please call Dave with your questions at 303) 520-0004.
