How GuardHill Differs from the Rest
We have seen many articles recently that refer to mortgage bankers as “shadow banks,” “non-traditional mortgage companies,” and “non-bank mortgage companies.” Where did all of these labels originate? How do we increase mortgage banker consumer awareness?
According to a recent Real Deal article entitled “The Battle of the Banks,” in 2016, 30 percent of residential loans in New York were issued by independent mortgage bankers…and the number has likely increased in the last three years.
Consumers should be aware that mortgage bankers are safe and consumer-oriented. Loan officers at a mortgage bank must complete extensive course work, pass comprehensive exams, and authorize personal background checks in order to obtain a mortgage license, which is unlike the protocol at retail banks. Mortgage bankers are typically privately held, like GuardHill, and are dedicated to providing value for their customers who are a major source of future business.
Mortgage bankers have a wide array of product solutions and loan guidelines for their consumers as a result of working with a variety of different investors, whereas retail banks only have their own set of guidelines.
A mortgage banker’s primary source of business is from the referrals of their satisfied customers. As a result, a mortgage banker will strive to provide the best combination of rates and service to ensure a positive experience for its customers.
GuardHill is a mortgage banker whose sole expertise is coordinating mortgages and is thus an expert in the field. Below are brief definitions of the differences between the types of mortgage providers.
- A mortgage broker is a company that originates loans then connects the borrowers with the mortgage companies. They do not underwrite the loan or use their own funds to close the mortgage.
- A mortgage banker is a company that originates the loan, underwrites the loan, and closes the loan using its own funds. Their sole focus is on mortgages.
- A retail bank offers multiple services including checking and savings accounts, personal loans, debit and credit cards, and mortgages.
Today, mortgage bankers are the future of the housing market. Consumers who are in the process of choosing a mortgage company should always consider contacting a mortgage banker.