Skip to main content

I'm in the process of refinancing the mortgage on my house, and in the process I learned something that should make the big bankers very, very worried.

For my new mortgage, I knew I would prefer to use a local credit union. But I also wanted to give the mortgage broker on my original loan a chance to get my business, since she was so helpful the first time around. So I got quotes from the credit union where I have my checking account, and also from the broker, who works with commercial lenders. Unsurprisingly, the quote I got from my credit union was much, much better than what I got from the broker. I told this to my broker, and also told her that because of the banks' recent behavior I preferred, morally, to go with a credit union. Therefore she wouldn't be getting my business.

But my mortgage broker isn't like the big banks. She didn't try to bluff, bribe, or threaten me to keep my business the way the likes of BofA and Wells Fargo are. Instead, she decided to make an effort to work with me. The happy (unless you're a big bank) conclusion over the jump.

My mortgage broker did some research and made some phone calls. And she discovered that she could originate loans for a credit union association. Lo and behold, the quote she gave me for a loan through that association was identical to the quote I'd gotten from my credit union. Far from being angry with me for ditching the commercial banks, she was grateful to me for pointing her in the direction of credit unions. She's now working with her boss to sign her agency up with the credit union association, and once that's done, she'll have much better loan products to offer all her customers. And I can get the best of all worlds: I can do business with a credit union, get the best rates available, and work with a broker I trust, all at the same time. I win, big banks lose.

Big banks should be very worried at the prospect of mortgage brokers working with credit unions. Brokers will almost certainly be able to get better rates through a credit union for most of their customers. And loans are how banks actually make money, through the fees and interest. So while folks moving checking and savings accounts out of commercial banks deprive them of capital, taking the loans away deprives them of profit. And that'll hit them where it hurts -- their bottom line.

If you're a mortgage broker, look into originating for credit unions. And if you're working with a broker to get a loan, ask them to look into it. They might not even know it's possible.

3:38 PM PT: Wow, rec list! First time, after being around (though mostly lurking) for 7+ years. Thanks all!

Originally posted to monster on Fri Nov 11, 2011 at 02:39 PM PST.

Also republished by ClassWarfare Newsletter: WallStreet VS Working Class Global Occupy movement.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

RedDan, Pat K California, Ottoe, Renee, Alumbrados, paradox, Angie in WA State, Doug in SF, Joe Bob, Mimikatz, Sylv, opendna, PLS, northsylvania, CJB, fcvaguy, Mogolori, jazzmaniac, filkertom, Odysseus, Brainwrap, teacherken, Timaeus, glitterscale, Geenius at Wrok, badger, artr2, gaspare, maynard, saraswati, PeterHug, wytcld, superfly, TechBob, Khun David, michael in chicago, Shockwave, wu ming, Dave B, Sherri in TX, LynChi, Wintermute, rhubarb, mslat27, celdd, eeff, Mnemosyne, Pompatus, xynz, polecat, recentdemocrat, WI Deadhead, SallyCat, bostonjay, Gareth, Creosote, Doctor Who, rasbobbo, cinnamon68, opinionated, emmanuel, bronte17, Zinman, missLotus, EricS, CanadaGoose, Einsteinia, BlackSheep1, kalihikane, nyceve, whenwego, Janie, evilrick, ellefarr, ask, RabidNation, highacidity, boadicea, Minerva, PBnJ, mkfarkus, mrblifil, otto, MisterOpus1, smokem2271, rabel, Wayward Son, chimpy, jbeach, poe, jalbert, librarianman, Cedwyn, antirove, Alna Dem, hopeful, PDX Dem, Janeo, revsue, jdmorg, dejavu, CitizenOfEarth, ranger995, bula, alivingston, white blitz, texasmom, BMarshall, mnguitar, flatford39, DSC on the Plateau, defluxion10, chickeee, annetteboardman, RebeccaG, lcrp, riverlover, alizard, Pohjola, frostieb, Kalil, econlibVA, AllisonInSeattle, zett, zerelda, ybruti, Kitsap River, ScienceMom, Steven D, jcrit, xyz, BigDuck, bablhous, rickeagle, eve, rmx2630, Armand451, oortdust, sawgrass727, sb, Julie Gulden, joanneleon, humphrey, ExStr8, maybeeso in michigan, Bluesee, sandblaster, radarlady, 3goldens, Tinfoil Hat, denise b, greycat, blueyedace2, JanetT in MD, unclejohn, SherwoodB, liberalcheesehead, Chinton, chimene, Technowitch, Militarytracy, Alice Venturi, JohnB47, Bcre8ve, sigmarthebad, dewtx, juliesie, drewfromct, madmommy, ratzo, fixxit, eru, majcmb1, SaraBeth, Sun Tzu, jimreyn, where4art, GreyHawk, Kayakbiker, gerardbellavita, blue jersey mom, markdd, babatunde, KahluaKrazy, kaliope, Tunk, noemie maxwell, Savvy813, Rydra Wrong, Blu Gal in DE, sodalis, coolbreeze, Pluto, Lindy, DaveVH, Blue Bronc, Snud, RainyDay, xaxnar, begone, reddbierd, forbodyandmind, Philpm, SoulCatcher, martini, third Party please, cre8fire, Shirl In Idaho, BachFan, Orinoco, tommymet, Patriot Daily News Clearinghouse, Keone Michaels, vigilant meerkat, sherlyle, DrSpalding, cybersaur, Clytemnestra, tobendaro, hungrycoyote, Russgirl, dopper0189, liberalconservative, seefleur, Dvalkure, kestrel9000, arlene, blueoasis, jguzman17, eglantine, global citizen, Ashaman, joe shikspack, CTLiberal, Randolph06, llbear, onionjim, nother lurker, zhimbo, Timothy J, doingbusinessas, Clive all hat no horse Rodeo, fiddlingnero, Mindtrain, kurt, Mr Horrible, kurious, bstotts, KenM30, matx, Friend of the court, ms badger, sea note, Quicklund, Pandoras Box, Aaa T Tudeattack, BentLiberal, DBunn, Thinking Fella, ladypockt, ammasdarling, subav8r, Sapere aude, pgm 01, grayday101, bluicebank, Cronesense, Habitat Vic, wa ma, Loudoun County Dem, tgypsy, SharonColeman, Debs2, ColoTim, NovatoBon, karmsy, Wino, rgjdmls, jeanette0605, HeartlandLiberal, noofsh, Matt Z, Jimdotz, terabytes, ezdidit, deepeco, Strabo, bnasley, Seneca Doane, artisan, getlost, jayden, jedennis, martyinsfo, vikingrob, cyncynical, tcdup, fstlicho, Bobeau, SeaTurtle, Moderation, Bridge Master, OIL GUY, pioneer111, GeorgeXVIII, leonard145b, TDDVandy, Puffin, Korkenzieher, janatallow, trueblueliberal, South Park Democrat, Terra Mystica, Empower Ink, rmonroe, JDWolverton, JayC, Amor Y Risa, AnnieJo, BobBlueMass, ferment, ChocolateChris, angry hopeful liberal, weegeeone, wayoutinthestix, Sixty Something, Youffraita, Involuntary Exile, bythesea, wade norris, Laughing Vergil, CDH in Brooklyn, lineatus, Akonitum, jamess, mikeconwell, Greyhound, Calamity Jean, tofumagoo, RandomNonviolence, hwmnbn, pickandshovel, triplepoint, Neosho, carver, catly, Tam in CA, brasilaaron, Seamus D, Horsefeathers, glendaw271, petulans, luckylizard, LaEscapee, Troubadour, My Spin, Abe Frohman, HarpboyAK, Nica24, slathe, Robobagpiper, palantir, Mayfly, HoosierDeb, enufisenuf, watercarrier4diogenes, scrambler, lissablack, fayea, LaFeminista, satanicpanic, 207wickedgood, prettygirlxoxoxo, Bule Betawi, number nine dream, J M F, litoralis, greengemini, juca, bsmechanic, matmak, stolen water, be the change you seek, Nebraskablue, Methinks They Lie, janmtairy, Hugo101, CamillesDad1, petral, kravitz, CaliSista, marzook, Calfacon, MKSinSA, COwoman, Dark UltraValia, IreGyre, Question Authority, stevenwag, haremoor, nancat357, astral66, EAColeInEmporia, Larsstephens, BigVegan, smileycreek, flor de jasmim, mamamorgaine, RhymesWithUrple, icemilkcoffee, NJpeach, politik, catwho, fidellio, CS11, Crabby Abbey, Giles Goat Boy, cazcee, Travelin Dave, netop, ATFILLINOIS, Eddie L, BoxNDox, gulfgal98, tb mare, ItsSimpleSimon, Puddytat, dlemex, Egalitare, DiegoUK, elengul, MsGrin, Otteray Scribe, Floande, DaveinBremerton, science nerd, Oh Mary Oh, Dems in 08, nosleep4u, Its a New Day, slice, Onomastic, Jane Lew, praying manatheist, BrowniesAreGood, TAH from SLC, kerflooey, ozsea1, coquiero, Oldowan, Bob Duck, bgblcklab1, sabo33, myadestes, gbinwc, La Gitane, Teknocore, HiKa, FarWestGirl, lexalou, kevin k, deeproots, Teiresias70, EquityRoy, feeny, boomerchick, mrsgoo, Haf2Read, marleycat, cr8nguy, zukesgirl64, badscience, slooterdam, muddy boots, seattlebarb, LSmith, doctoraaron, fossil fish, MuskokaGord, antooo, yaque, sound of progress, poliwrangler, Wood Dragon, Caddis Fly, disconnect the dots, diffrntdrummr, Hayate Yagami, ratcityreprobate, SteelerGrrl, Book of Hearts, StratCat, jham710, Regina in a Sears Kit House, aerie star, Mentatmark, MichaelNY, PrometheusUnbound, No one gets out alive, bearette, AnnetteK, brown and blue all over, KayeB in Florida, gnostradamus, OldDragon, anodnhajo, Siri, We Won, molecularlevel, Citizenpower, docrocktex, foucaultspendulum, ahumbleopinion, Trevin, orangecurtainlib, AnnieR, a2nite, This old man, peachcreek, TheGrandWazoo, TBug, radical simplicity, OllieGarkey, lunachickie, New Minas, redstella, james321, Noddy, avsp, Kinak, ItsaMathJoke, George3, Marjmar, RonK, NeuronFlash, lastlegslaststand, Candide08, allensl, Fracturedchaos, Zera Lee, Lensy, frustrated1, CleanSlate, DamselleFly, Panacea Paola, Dallas L, semiAdult, the greasybear, Illinois IRV, TheMeansAreTheEnd, countwebb, ocschwar, Late Again, remembrance, califgrrrl, glorificus

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site