Survey Results From

Guaranteed Mortgage Packages:
What Brokers Want and Need

Mortgage Broker Interest in Guaranteed Mortgage Packages

Acceptable Providers of GMPs for Mortgage Brokers
Other Than Lenders

Sample comments from mortgage brokers responding to the survey:

“We are already providing this (GMPs) to our customers!”

“GMPs seem to be a good idea, if the concept doesn't slight the mortgage brokerage industry.  It seems that a significant advantage would be awarded to the largest companies in the business, and that small business would not be able to compete with the mega banks.  GMPs would be good for mortgages less than 100k.  We already offer a GMP of sorts when we guarantee closing costs or perform ‘no cost’ transactions with closing costs paid from YSP.”

“I think inherently they (GMPs) are a good idea. The problem is that the selection and control of these services need to remain with the broker (lender) b/c we are controlling the transaction. Strict guidelines and controls from big brother will only slow the process and increase costs to borrower. I would introduce them rather than mandate and let the free market dictate what will happen. If a company can efficiently and effectively provide GMPs, they would be ahead of the guy next door and ideally would prosper.”

“I think it will be unfair to the small Broker offices.  I think the savings to the borrower will be minimal.  I think Mortgage Lenders & Brokers who lie about the estimated closing cost (GFE) will continue to mislead and lie to borrowers.  You can't legislate someone into being honest.”

“If this is the new wave of providing service I don't want to be left out however, I prefer the control I have now over what I would have under a GMP scenario. I feel we can close more loans when we have greater control over the process.”

“As I said above, I would like to select my own local providers and not rely on those selected by my wholesalers. It's bad enough when I have to explain to a client when I use a lender appraiser - not polite, just churning out the work - and not responsive to correcting THEIR mistakes! Imagine what will happen if I have to use LOW bid attorneys who can’t get work other ways…”

“A packaged format would need to provide us with a cost savings over the current structure and provide us with more control over the process. Time and money!”

“I do not like others controlling my business.  I think this will slow the approval rate and loan process of helping consumers buy a home or refinance to save money.”

“Until this survey, GMPs were not something I had considered.  The concept is very intriguing and if it works to streamline the loan process, keep costs down and profits up, then I would love to use the system.”

Our survey report contains over 100 pages of other vital GMP statistics and findings.  

With HUD close to releasing its RESPA reform rule – including a probable provision for Guaranteed Mortgage Packages (GMPs)—  you can use our survey data to get your GMP offering right the first time.

Our just-completed survey, Guaranteed Mortgage Packages: What Mortgage Brokers Want and Need, answers these key questions:

  • Which mortgage broker segments are the most interested in providing GMPs to their customers?

  • What is the principal incentive for mortgage brokers to offer GMPs?

  • What are the greatest broker concerns about GMPs and how can potential providers address them?

  • Which brokers want lower prices from GMP providers? Which brokers would prefer better service instead?

  • Which lenders, title companies, and technology providers would brokers prefer to provide GMPs and why?

To review the online survey instrument, go to:  www.campbellsurveys.com/gmp/broker.

For more information about our survey, or to place an order, call John Campbell at 202.363.2069. Or e-mail us at: gmpinfo@campbellsurveys.com.

 

Guaranteed Mortgage Packages: What Mortgage Brokers Want and Need is a joint project of Inside Mortgage Finance Publications, Inc. and Campbell Communications, Inc. © 2003 Inside Mortgage Finance Publications.