April 23rd, 2016 1:56 PM by Richard T. Cirelli
Financial tech is growing in popularity but when it comes to
mortgage advice, a traditional approach wins hands down. A recent
poll found that while most people seek information online for recipes (79%)
and medical advice (75%), only (32%) trust the internet with their finances.
Having a great website can help attract clients, but when it comes to
mortgage advice 70% of respondents said they would talk to an advisor
before pursuing financial advice. That beats financial websites
(41%), parents/family (36%) and real estate agents (25%).
What Turns Them Off?
About 50% said the glut of information online puts them off and although
89% feel it is easier to find information they need online rather than seek
it out from other sources, an overwhelming 73% say even though the
information is helpful, they will still always seek advice from an expert.
In my 40 years of mortgage experience, I can assure anyone that only an
"expert" can provide the kind of advice that consumers can depend
on to make what is probably the the largest financial decision of their
life. Mortgage Brokers can not only offer the best expert advice but
also have the largest array of products and services to meet their
Mortgage Brokers took the unfair rap for the bad mortgage
loans that led to the mortgage and financial market meltdown around
2008. But it's the big banks that beat the system the most.
It was recently announced that Wells Fargo will pay the US government $1.2
billion for hiding bad loans ahead of the housing market crash. The
mortgage lender's certification of thousands of loans which were given FHA
insurance led to taxpayers footing the bill when the loans were defaulted.
A statement from Manhattan U. S. Attorney Preet Bharara said:
"Wells Fargo enjoyed huge profits from its FHA loan business,
the government was left holding the bag when the bad loans went bust.
Wells Fargo, one of the biggest mortgage lenders int he world, has been
held responsible for years of reckless underwriting."
Similar settlements have already been reach between the government and
Goldman Sachs, Morgan Stanley and JP Morgan Chase.