Broker v. Banker: The Double Standard

The double standard doesn’t just apply to male and female anymore, it also applies to brokers and bankers, and they’re just as harsh.

Most importantly, brokers have to jump through as many hoops as a basketball during a championship game, and it’s getting ridiculous.

 J. Scott Harris, vice president of business development and recruiting at Gold Financial Services, states in an article by Mortgage Professional America:

“That’s probably my biggest axe to grind right now in the industry — how the mortgage brokers and bankers have to be licensed, pay fees, etc., in each state. Whereas the FDIC bankers, in four days, poof, they’re licensed in all fifty states.”

I have to agree. Not only does this put independent brokers like myself at a serious disadvantage, it demonstrates how freely banks are allowed to operate presently. Maybe too freely.

While all mortgage originators have to be registered with the Nationwide Mortgage Licensing System, the license requirements for independent brokers vary from state to state. Not to mention the fees and education requirements associated with obtaining a license, which depend on completing the education requirements in every state where they are licensed.

I’m no stranger to having to jump through hoops, these have become familiar after so many years, but this is another matter entirely. If I ever wanted to expand to another state besides Florida, I’d have to complete another set of requirements while bankers can roam freely from state to state.

The most frustating aspect of obtaining a license in each state is the fact that there is no standardized test or general education requirements, it’s up to the discretion of the state. In short, the state decides what is necessary to obtain a license in their state. If anything, the licensing rules should be the same for both brokers and bankers, one where everyone jumps through the same hoops or they disappear completely.

It’s almost like a punishment…”you chose to go into business independently, therefore, we’ll make it everything harder just for you.”

It also leaves little options for brokers who want to obtain a license elsewhere.

For Harris, “this continues to be a huge travesty, especially for brokers who have gone through rough times and can’t get a license so they either leave the industry or go work for a bank.”

I can’t speak about anyone else but I become an independent mortgage broker because I want to offer personalized service to each and every client. I want to be able to take the time to sit down with them and explain to them the in’s and out’s of the program. I want my clients to be able to trust because they know I will always answer their questions, i will always know their name and situation, I will always be there to help them when they need it.

Banks don’t have the time or resources to offer the same service. They can’t accommodate to a client’s specific needs, because they adhere to a specific schedule, the clients have to adapt to theirs. I’m independent because it offers me the freedom to adapt based on each client’s individual needs.

These regulations, however, seem to enforce the opposite, and continue to punish those who don’t go the way of the herd, but break away in hopes of finding greener pastures.

At PS Financial Services, an independent reverse mortgage broker in Florida, we offer all the reverse mortgage options available for a retiring or retired senior homeowner. Give us a call at (888) 845-6630 or send us an email at info@PSReverseMortgage.com. We do not pressure those who inquire, we are simply here to help.