I believe there has been a resurgence
of realtors utilizing the services of traditionally more service oriented
and experienced mortgage brokers. For one, mortgage brokers offer more lender
options; they are licensed by the BRE, and are required to pass stringent state
and federal exams as a result of the Dodd-Frank Act. Retail banks such as
Chase, do not require their LO’s to have these credentials.
JPMorgan
Chase announced that a couple thousand positions would be eliminated, changed,
restructured, whatever term you'd like to use. Rumors are large numbers of LOs
leaving the bank for several weeks now - perhaps they saw the writing on the
wall: 2000? Or is it 5,000? Or 6000? Or 8,000? Who can keep track! Seriously,
many attribute these activities to new Qualified Mortgage (QM) guidelines
effective this Jan. 10th from the Dodd-Frank CFPB. ("JPMorgan Chase is
scaling back its mortgage products as the market cools. The company plans to
eliminate 22 of its 37 mortgage products and programs by the end of 2014,
according to a Tuesday presentation to investors. It has already jettisoned 12
and plans to get rid of 10 more by the end of the year.") And thus the
consumer loses 60% of the available mortgage programs at Chase. And should we
assume some of those 15 programs left are Private Banking? In that case, most
consumers do not have $1 million in cash in JPM, so the damage could be even
worse. One wonders when the other big guys will follow suit
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