Follow Patrick Linkedin Facebook
Email Patrick Email
Financial
May 1, 2015

Follow Up: Consumer Reports Revises Its Opinion About Mortgage Brokers

Sponsored Content provided by Patrick Stoy - Mortgage Consultant/Owner, Market Consulting Mortgage

The subject of my last article was a publication by Consumer Reports in which the editors recommend that borrowers shop around online and deal with large banks instead of mortgage brokers. After receiving numerous responses questioning that recommendation, I am pleased to report that Consumer Reports has updated the text of the original article.

In the revised version of the article, Consumer Reports now advocates that borrowers should include credit unions, mortgage brokers and mortgage companies when they begin the task of comparing rates, terms and programs. 

One of the more notable voices in dissension to the original article was John Councilman, president of the National Association of Mortgage Brokers (NAMB). His rebuttal to the article was so impressive to Consumer Reports that he received a personal response, which he posted and wrote about on the NAMB website. 

According to Councilman, it was positive news to learn that Consumer Reports had removed their guidance encouraging consumers to begin shopping for a loan at a specific website that only features large banks. He writes that, “Online shopping is often disadvantageous to consumers ... it is too easy to make a costly mistake. It makes little sense for consumers to apply online when online offers are seldom a better deal than those of in-person applications with a licensed loan originator.”

Councilman points out that it is easy to find a highly qualified loan originator, and that loan originators undergo background checks and rigorous educational requirements. In his view online applications can be risky for consumers because of the potential for identity theft.

One of the main points that Councilman makes on the NAMB website is that borrowers should go against the advice put forth by Consumer Reports and avoid using the Consumer Financial Protection Bureau’s online Rate Checker. “Nearly everyone in the industry agrees,” writes Councilman, “that the CFPB is doing a disservice to consumers. The Rate Checker is one of the worst places to shop [for] rates.”    

Since the Rate Checker uses data from a marketing firm to figure out what rates are currently available on the open market, there is no real proof that the rates were actually received by consumers searching for a loan. Further, the Rate Checker’s failure to provide fees, APR, finance charges and other information represents a violation of the Truth-in-Lending Act. 

The bottom line, in my mind anyway, is that it is always preferable to work with a real-life person who has local ties and a vested interest in the community rather than a large, faceless corporation. There is a misconception out there that the too-big-to-fail banks offer more competitive rates than the smaller entities such as mortgage brokers; however, I can confidently say that I prove that wrong on an almost daily basis.

Moreover, the service provided by a smaller company will always be superior. As I wrote last month, people who value price over service usually end up with lower customer satisfaction ratings and lower overall savings. For a free assessment about your buying power, contact me at the number below.

Patrick Stoy has 16 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or 910-509-7105.

Other Posts from Patrick Stoy

Mcm 14jan insight
Ico insights

INSIGHTS

SPONSORS' CONTENT
Untitleddesign2 9202334730

New Scotts Hill Medical Center to be a One-Stop Destination for Many Health Care Needs

Novant Health - New Hanover Regional Medical Center Novant Health
2022052 75 142344351

Bridging Futures: The Case for Toll Funding in Wilmington’s Cape Fear Memorial Bridge Revamp

Natalie English - Wilmington Chamber of Commerce
Cfss headshots parker robert webversion 21422121214

The Latest Solar Scams and What You Can Do to Help Stop Them

Robert Parker - Cape Fear Solar Systems

Trending News

EPA Makes $3B National Announcement At Port Of Wilmington

Audrey Elsberry - Feb 28, 2024

OsteoStrong Opens On College Road In Wilmington

Emma Dill - Feb 28, 2024

Patricia Kusek Resigns From Endowment Board

Audrey Elsberry - Mar 1, 2024

Polyhose To Double The Size Of Its Wilmington-area Facility

Emma Dill - Feb 29, 2024

Report Finds Economic, Environmental Impact Of N.C. Railroads

Audrey Elsberry - Feb 29, 2024

In The Current Issue

Born To Create Affordable Housing

The competition is stiff, and the work is hard, but Stephanie Norris wouldn’t give up her job for anything....


Fallout From Natural Disasters, Pandemic Puts Strain On Insurance Companies, Consumers

New arrivals to the North Carolina coast are often pleased with the amount of house they can buy here from the proceeds of their home in lar...


Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2023 Power Breakfast: Major Developments