Are brokers really lazy? Here's what an industry giant says

by Ryan Smith18 Sep 2014
One of the biggest names in the mortgage industry has sounded off on a comment made on the MPA forums.

On Tuesday, MPA forum poster Michael responded to a story about broker involvement by saying that “brokers have always been and always will be complacent and LAZY!!! They just will NOT get involved, they want someone else to do it for them. This has been their history during the 30 years I have been in this business.”

The comment ignited a firestorm on the forum; even NAMB President John Councilman chiming in to defend brokers. “My take is that people are so busy disclosing, re-disclosing, processing and reprocessing, that they can't spend a lot of time on anything else,” Councilman wrote.
And the head of one of the country’s largest wholesale lenders reached out to MPA to chip in his two cents.

“I disagree strongly,” said United Wholesale Mortgage President Mat Ishbia. “Brokers aren’t lazy. They’re hard-working small businesspeople who are the very fabric of our country. … We have brokers who are harder workers than anyone else I know. They’re out there on the street, working in their communities. Without them, we’re not going to be successful – not only (UWM) as a company, but all of us as an industry.”

For supposedly “lazy” people, Ishbia said, brokers do quite a lot that other mortgage professionals don’t have to.

“They’re the most educated mortgage professionals, especially now. They have to go through all the licensing, all the testing,” he said. “Banks don’t have to have their loan officers go through all that testing. They don’t have that scrutiny. The ones that are around today, especially – who’ve been through QM and all the regulatory rules – are some of the best mortgage professionals around.”

Ishbia said he believed strongly in the broker model – not only professionally, but personally.

“The best place for a borrower to get a mortgage is at a broker. Brokers have more options than any mortgage bank. Mortgage brokers have all different lenders they can try,” he said. “When I have a friend who needs a loan, I always refer him to a broker, because that’s going to be where he gets the best deal. Consumers want the best deal for them, and mortgage brokers are the best way to go.”


  • by DD | 9/18/2014 9:45:23 AM

    I agree with the comments that brokers are not lazy. I will say though the comments regarding brokers having more options than any mortgage bank is factually incorrect. I owned my own broker shop for 19 years and now work for a mortgage bank. An actual bank that does mortgages not a broker with a line of credit. How many brokers offer new construction mortgages? How many brokers have the option to close a mortgage with the bank or to broker the mortgage outside of the bank? How many brokers have the option to provide a lender credit to a client? how many brokers can sell directly to Fannie, Freddie, Wells, Chase.... I love my past life as a broker but to say brokers have more options and provide the best deals just is not true in today's marketplace.

  • by DE | 9/18/2014 10:15:15 AM

    Are you serious? I have had my broker shop for 18 years. Brokers CAN offer the Borrower a Lender Credit!! Why would you think differently? We do have Construction to Perm Loan Programs. We have several different programs available for Construction projects. Why would we want to offer the borrower an opportunity to close with a Bank there are not benefits. We offer them the Best Price.
    We do not have to sell to Fannie, Freddie, Wells, Chase or any of the other larger Banks. That is not a benefit to the Borrower and it certainly does not in any way change the AUS findings because you can sell to those entities.
    Banker's have a lot more overhead with the Advertising than a Broker will ever have. Broker's do not have the overhead which causes the Bank's to raise the fees.
    Brokers can adjust the fees to meet the needs of the Borrower. Big Banks mandate what fees will be charged and there is not getting around it. I too have worked with a big Bank, I would never go back.

  • by David Matthew | 9/18/2014 10:30:24 AM

    Did anyone read Michael's entire post? He is right. He was not speaking to workload or against the broker industry, but against the new flock of MLO's that simply do not know how to do their jobs. I for one, have been doing this since 2006 and have ever strived to learn this craft and anticipate the changes that have beset us. Was RESPA 2010 REALLY that scary? No, it was not. Yet I still work with originators that have NO IDEA how to complete a GFE or a change of circumstance. I agree that broker's are indeed the best deal around and have stolen MANY a deal from big bank. Let's be honest, big bank is tired of losing interest spread to broker's at rates they would NEVER quote. I also agree that we contend with a seemingly unending torrent of regulation that A) Costs consumers more and more EVERY single time they are implemented and B) are implemented by those that either hove no desire to see the broker succeed or have no understanding of what a mortgage transaction is. Either way, the vast majority of these new regs are well intentioned and DO NOT work as such. Kind of like communism. Michael is correct and his comment was taken out of context. Furthermore, I do not appreciate that this comment was taken out of context to springboard commentary and attention to this blog. Take it for what it is. If you are broker, try to act the part. We are a good thing. Try not to spoil it for those that actually care and still take joy in closing a mortgage.


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