The number of loan officers in Ohio who do not work for banks has fallen sharply over the course of the last 10 years, down as much as 75% to a total today of 3,000. Ultimately, those who suffer are the consumers, a Cleveland.com article states.
“The eye-popping decline started because, 10 years ago this month, Ohio began requiring loan officers to pass criminal background checks. That swept thousands out of the industry. The financial crisis of 2008-09 squeezed out thousands more,” writes a Cleveland.com article. “The result: Consumers have fewer choices when shopping for a home loan and it may hurt them. Others say consumers are better protected because so many of the bad guys had to leave the business. And those who are left – including those at banks — must conform to stiff new layers of state and federal regulations.
…[Charles] Bromley of Ohio Fair Lending said it’s unfortunate for consumers that more than half of the mortgage lending in this country is financed by four banks: Chase, Bank of America, Citicorp, Wells Fargo. “There are fewer choices for the consumer to get a better deal on a mortgage,” he said.Historically, consumers could get more leniency and could negotiate fees and terms with a mortgage broker. Banks, on the other hand, have generally always been less flexible on terms and prices.
Read the original article.
Written by Elizabeth Ecker