The mortgage industry has undergone significant changes during the last year, and will continue to see change in the early part of 2011. The industry, as a whole, has experienced a significant reduction in the number of licensed loan originators and independent brokers, due to stricter licensing guidelines, real estate market conditions, and other factors.
Business models, like my own, in which I try to pay borrowers' closing costs with a portion of my commissions earned on the deal, are again under pressure due to proposed new regulations that are slated to go into effect on April 1, 2011. Like many other regulations that have evolved after the mortgage crisis, these regulations will have a negative impact on a borrower's ability to obtain competitive rates, by eliminating a mortgage broker's ability to offer superior rates and fee structures at a lower cost than the big banks would charge for the same loan products. The competitive advantages that I have had, due to lower overhead and more efficient operations are being eroded as an unintended consequence of new regulations. Nevertheless, I remain committed to offering my customers a better deal than anyone else.
Moving forward, I will continue to provide exceptional customer service and the lowest possible rates.
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