Can't we all just get along?
The internet has a funny way of bringing people together. We put so much of our time, energy and emotions into things that random people do or say on the internet. Whether it be a website, social media, or amateur posts on a corporate website whose blog you subscribed to on a whim (thanks new subscribers!), you would think that there was free money buried inside our iPhones.
David Stevens, the former president of the Mortgage Bankers Association, is a lifelong mortgage professional who is kind, generous, and as a cancer survivor, he exudes a level of empathy that only a person who has looked death in the face can truly understand. In a recent post on LinkedIn, Stevens doesn't offer free money, but he shares something much more valuable.
Stevens believes there is a "Mortgage War" going on right now. The war is being waged between two forces: mortgage brokers and mortgage bankers. Without naming names, Stevens says that the mortgage broker movement is being led by a "proud, unashamed, advocate" that, while innovative and exciting, is unnecessarily "denigrating the competition." I think we all know who he's talking about and it's not Yosemite Sam.
The pros and cons to both the broker and banker business models have been voiced ad nauseum, so let's avoid that topic. The point Stevens makes is that the mortgage industry as a whole is undergoing a transformation due to technology innovation and the Silicon Valley ethos that comes with it, and that "consumers are benefited by a diversified mortgage industry."
Stevens believes that much like the insurance industry, embracing competition and even promoting your competition to clients as a matter of choice, builds trust with borrowers, which we all know is much more important and profitable than gaining a few basis points.
The net-net from Stevens essay is that competition is good, choices are good and the mortgage industry is healthy enough to support many different business models. With mortgage applications on the rise and interest rates dropping like an anvil, it would be a shame if mortgage professionals engaged in name-calling, competition denigration and general internet name-calling when so much good is happening for everyone involved.
Now, let's move on to our next internet distraction... OMG Beverly Hills 90210 is back on TV!!