Mortgage Brokering vs Mortgage Banking
If you are in need of a mortgage broker in Florida, you have come to the right place.
NMLS # 216170
Nowadays, I call myself a West Palm Beach Mortgage Broker with over 23 years experience helping happy clients all over the state of Florida.
During the last 5 years, I called myself a West Palm Beach Mortgage Banker helping happy clients all over the state of Florida.
At the beginning of 2017, I decided to move over to brokering side again and I am happy to say things are going very well. I am very glad I did. Here is a video from one of my favorite sources that sort of characterizes how I feel being able to do my job better.
There are several reasons why I made this decision ...
There #1 reason is that I am able to move the file quicker. It is no fun if I have every one in the transaction yelling at you if the loan is running late. It is a lot of fun if I am ready and I am waiting on a title company or an HOA because I moved so fast. Being able to move the file quickly is always important especially when your client has there life packed up in a moving van.
Whenever possible I like to deal with the #1 wholesale mortgage lender in the country. They have unbelievable pricing, service and technology which in turn allows myself to offer unbelievable rates, service and technology.
My first three loans of 2017 took 14 calendar days, 14 calendar days and 17 calender days respectively. Back in the old days of banking the target was 45 days. With the new TRID guidelines that became even harder. My current sources do the TRID documents during the process so there is no three day wait at the end of the process.
In addition to dealing with the largest wholesaler, at Gulf and Western Mortgage we have specialty niche sources that go a little further than your typical banking channels.
Currently I have a special niche FHA source that can accommodate credit scores as low as 550. -That's amazing!
Another major advantage of Brokering over Banking is what is required as far as documentation from the customer. Documentation from the client is less stringent compared to what you would need if you were going to a bank.
Banks tend to over document because they will need to sell that loan on Wall Street after you close. If you are sending your documentation to the source that ultimately will service your loan, they can cut corners if they want. It's there loan. Sometimes they do in the name of service. The secondary marketing/ underwriting departments of a bank have to have the opposite mindset because they do not wish to get stuck with a loan they cannot sell. Too many of these, and the warehouse lines get frozen or shut down and the bank looses liquidity and goes out of business.
Flexibility is about even. Every mortgage company needs access to niche products for hard to finance situations. Here is a list of some of the niche products that are on the comeback.
Bank statement loans - for customers who are self employed and have cash flow but not on their tax returns.
1% down program - This is actually a Freddie Mac program that is 97% financing but the wholesaler gives a grant of 2% to the deal. Great for first time homebuyers who are tight on Cash to Close.
FHA Flexibility - I have FHA Elite with unbelievable rates at source #1 or aggressive pricing for low scores all the way down to 550 at source #2.
Non-Prime Loans - For customers who have had a foreclosure or short sale in their past. You can be one day out of foreclosure and still get a loan.
VA Loans - VA loans are basically 100% financing. The client finances in the 2% VA financing fee and usually needs about 1/3 less money at closing compared to FHA.
Private Investor Loans for Flippers- Investors who buy fix-up and flip no longer need to go to the hard money guy on the corner.
Foreign Nationals - Foreign nationals are still purchasing lots of real estate. No reason to pay cash.