Brokers feel the buydown heat

Brokers feel the buydown heat

Brokers feel the buydown heat It may be the broker equivalent of the canary being sent into the coal mine with early results from the Broker Sentiment poll suggesting industry players are feeling the effects of having to buy-down rate to stay competitive.

Results have been pouring in and a number of brokers have admitted their biggest concern for the industry in 2014 is reduced revenue due to decreased commissions. However, your chance to participate running out, as the deadline is quickly approaching. Get your submission in today for your chance to win a Samsung Galaxy Tab.

Early results also indicate the industry is still feeling the effects of federal mortgage regulations. And with a great deal of brokers admitting mortgage rule changes have had a negative effect on business, those same players may wonder how the others are faring so well.

Overall, however, brokers seem to be satisfied with their career choice, with the majority of participants admitting they are not considering leaving the channel in the next 12 months. Certainly, this is good news for all the homebuyers 2014 will produce.

And how exactly do brokers plan on reaching those potential clients?

Surprisingly – and despite generally being tech-savvy marketers – brokers believe the yellow pages will continue to play a significant role in lead generation, with quite a few participants admitting they are the most important tool in the marketing tool belt.  

So, have you had your say yet? Click here and spend five minutes filling out our poll to have your say – and a chance to win a Samsung Galaxy Tab.
 
23 Comments
  • Client of mortgage broker 2014-02-24 1:09:52 PM
    I think that it is great that brokers are willing lower their commissions in order to get me a better rate. This is no different than when we consumers buy any product and haggle for a better price. I'm sure mortgage brokers also haggle when they buy products like cars and try to get the best deal. At the end of the day, as a consumer, I want to get the best deal possible and will shop around until I get it. If I find a better deal elsewhere, I will leave the bank that I am currently working with and jump for a lower rate. I do feel bad that this jumping around does mean that brokers do waste their time but this is no different than when you test drive many cars and leave the car salesman hanging. This is the trend today where people everywhere use the internet to get a better deal. Within my circle of friends we are not discussing how we as a consumer can now take advantage of the competitive mortgage market and get brokers to fight each other and beat each other up by offering lower and lower rates. This is the hot topic at dinner parties - how to play the mortgage market to get a lower and lower rate!!! On a personal note - I have 2.99% from a credit union but a broker is willing to give me 2.98%. This is great. Can't wait to announce this in news bulletins and chat boards! I love this country. Daniel.
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  • Easy Decision 2014-02-24 2:08:54 PM
    Haha...well the lowest rates are often paired with crippling restrictions. Will you still be high fiving your friends over the $500 in annual savings you earned with the lower rate when you are paying your $20K penalty?

    Your automobile example is valid...you chose a very specific model of car and then try and beat up as many people as you can until you get the lowest price. This only works because it is an apples to apples comparison. You will find that mortgage are most certainly not apples to apples with rate being the only variable.

    The uneducated mortgage consumers are often being taken to the wood shed by playing the "lowest rate wins" game. Expensive lesson...but at least your friends think you're cool. :-)
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  • Ron Butler 2014-02-24 2:17:50 PM
    @Easy Decision........... I can see why you don't want to use your real name. Using your real name while you insult and belittle consumers is likely not a plus for your mortgage broker practise.

    Most of the brokers advertising discounted rates take care to give every consumer full disclosure regarding the mortgage product being offered and all rate advertisers quickly get used to be constantly shopped.

    But that's why we are here; to get the consumer a better deal.
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