New Trend in Mortgage Trade Organizations?
The New Hampshire Mortgage Bankers and Brokers Association voted unanimously to align their organization with the National Mortgage Broker’s Association beginning in 2007. The New Hampshire organization has long been a member of the National Mortgage Banker’s Association even though the composition of the state chapter includes both bankers and brokers.
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As is common in most states, businesses which are licensed to be mortgage bankers are eligible to broker loans to other lenders. With the increase in sub-prime and ALT-A lending and a more competitive industry, mortgage bankers have to look to alternate loan programs and the lenders that provide them. The result is an increase in brokered loan production.
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Who Represents Your Needs?
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Harry Dinham, the President of the National Association of Mortgage Brokers makes the point of differences between the two organizations.
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“The Mortgage Bankers Association primarily represents the 10 or 15 largest banks in the nation,†said NAMB President Harry Dinham. “NAMB is most suited to protect the interests of small business owners in our industry. We believe that we can better represent many of the New Hampshire members in Congress and through our strong broker and banker education programs.â€
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Ultimately, the service to individual loan officers and smaller lenders is what was important to the New Hampshire MBBA.
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“We serve larger banks and small business brokers,†said Meg Malette, the New Hampshire association’s executive director. “While our MBA membership meets the needs of some our members, we knew that we needed something more for the mortgage brokers and mortgage bankers who face much different challenges than the big banks.â€
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The National Association of Mortgage Brokers (NAMB) has over 27,000 members and prides itself on both its advocacy and lobbying efforts in government and the educational resources provided to members.
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Will It Happen Elsewhere?
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One unique aspect of the decision on the part of the New Hampshire Mortgage Bankers and Brokers Association is the dual membership it already had. Most states have local chapters of both national organizations. However, the NAMB is increasingly attractive to mortgage bankers because of the educational and “small business†focus of their membership benefits.
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One change in the mortgage industry is the expansion of net branching. A net branch is a branch office of a mortgage banker which has local co-ownership by the branch manager. As a result, each office location is run like a small business despite being part of a large mortgage banking entity. This type of company would get a greater benefit from the NAMB and it’s resources.
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Another influence is the continued separation between the needs and issues facing the top 20 mortgage servicers like Countrywide Home Loans, Wells Fargo, Washington Mutual, Chase and Citibank and the needs of the thousands of small mortgage lending offices. Will this kind of alignment happen in other states?
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Ken Stampe
©2006 http://blog.homeloandfw.com