The Mortgage Channels
Residential loans (Conventional and Government) are originated in the Primary Market and sold in the Secondary Market consisting of both public and private investors who buy mortgage notes. These investors are primarily Fannie Mae, Freddie Mac and Ginnie Mae. Lenders then replenish cash reserves so they can originate more loans. The Primary Market is important to the consumer because this is where it’s created. These loans all end up in the same place and are offered by the same lenders, just through different channels.
This makes selecting the originator the most important part of the mortgage process. With recent industry changes/trends and in protection of the consumer, we support competition and choice.
- Usually a depository in some fashion with other products and services.
- Typically only one or very few lending source or limited options which may result in higher rates and fees due to operational costs/lack of comparison.
- Loan Officers may not be required to take entry-level or continuing education.
- Loan Officer represents the bank rather than the consumer.
- Usually only offers mortgage services, non-depository.
- Focus on using lines of credit over brokering for margins, even if more favorable terms are available. Rates and fees can be higher due to operational costs.
- Not a “True Broker”
- Loan Officers must take entry-level and continuing education and many have more experience than a bank.
- Might use the controversial sales terms “mortgage banker” when in reality a “non-bank” or “direct lender” when actually an “in-direct” lender.
- Usually only offers mortgage services, non-depository.
- Multiple wholesale lenders and programs – full brokerage only.
- Works and shops exclusively for the consumer without priority to any lender or pass-through line of credit.
- Loan Officers must take entry-level and continuing education.
- Most advanced platform, requiring a high level of experience.
- With controlled costs, we believe this is the most favorable channel for consumers on pricing and programs.
van-tage (n); a position giving a strategic advantage, commanding perspective, or comprehensive view
Our mission: To position our clients for more favorable loan terms and execution.
Vantage Mortgage Group was positioned in Oregon in 2007 to prepare for the biggest change the mortgage industry would ever face. The primary mortgage market in the United States was unfortunately experiencing a high level of irresponsible lending and borrowing in prior years, ultimately becoming the cause of our great recession. Following the melt-down, lenders and mortgage loan originators bounced around in fear or fled to larger corporate banks/branches to avoid licensing requirements or full disclosure under new necessary regulations. The leadership at Vantage Mortgage Group did just the opposite and stood strong in support of the wholesale lending channel and the local community.
The company understands that reputation, credentials, and references are vital for consumers now entering the new mortgage marketplace. Since established, the early predictions of VMG have come to fruition and their clients are enjoying the benefits. Currently very few mortgage providers in the US primary mortgage market are positioned exclusively under the wholesale lending operational channel without the influence of credit lines or bank priorities. Vantage believes that their positioning, combined with the most experienced originators working exclusively for the client, results in better loan pricing and execution. Vantage is now proud to be one of the highest customer-rated mortgage providers in Oregon and Washington State.
Vantage Mortgage Group is one of the few “true” Mortgage Brokers left in the Pacific Northwest. What does yourposition mean as a consumer entering the primary mortgage marketplace and why is it so important? That’s a good question that many don’t want you to know the answer to….
Consumers in the United States preparing to buy or refinance a home have access to the same agency-backed residential conventional and government loans (bought or insured by Fannie Mae, Freddie Mac, or Ginnie Mae) through different origination channels. These channels include retail banking or depository institutions, correspondent lending, and wholesale lending. Under retail and correspondent lending, the Mortgage Loan Originator (MLO) is employed by the lender. Under wholesale lending, the Mortgage Loan Originator (MLO) is employed exclusively by the brokerage working on behalf of the consumer (not by the lender) creating more independence. Wholesale lenders do not employ Mortgage Loan Originators and rely on the licensed local brokerage to bring their product to the consumer. Many believe this is the most cost-effective way for lenders to originate mortgage loans.
While the agency guidelines and investors are identical as controlled in most cases by a computerized approval prior to lender selling the loan… the pricing, execution, and experience of staff will be greatly diverse. These channels are certainly not created equal and the pricing and execution the consumer will experience will rely on their position. Remember, the lender is just a pass-through to the agency/investors that buy, insure, or guarantee the majority of residential mortgage loans. Consumers must be aware of this when sales people use false terms such as “direct lender” or “in-house” underwriting when in reality all are in-direct and underwriting conducted initially by a computer in most cases. Portraying these terms as being an advantage or having more control is misleading and inaccurate, when many consider a disadvantage due to the probability of producing less choices at a higher cost. Great service is expected by all in today’s world, but what the consumer doesn’t know on margin and overhead may significantly impact the terms of their mortgage liability.
As many can imagine, the regulatory environment has greatly changed in the mortgage and housing industry after the great recession of 2008. As a result, awareness and adaption on consumer impact must control the vision of a mortgage company now and in the future through collecting data and facts over all else. Vantage Mortgage Group (serving Oregon and Washington exclusively) has embraced these changes and rely on their clients positive experience and price advantage to produce more referrals. This requires that they align their clients in the bestposition they see possible which is as a true mortgage broker without credit line(s) influence. Because of this, Vantage persistently educates consumers and colleagues on understanding the indisputable math and data around mortgage operations rather than the hard sales pressure that many consumers and others receive in the primary mortgage marketplace. Operationally, Vantage believes that the wholesale origination channel with lender comparison is the only channel (if operated properly under current regulatory requirements) in which the consumer is not steered toward temporary lines of credit rather than lender comparison prior to loan sale. The company, however, greatly supports competition and all channels of loan origination if run properly for consumer choice.
Vantage offers a large variety of wholesale lenders for comparison on pricing, execution, and program guideline overlays. Vantage Mortgage Group’s origination fee is paid directly by the wholesale lender selected, all at the same margin, making comparison relevant and transparent under one pricing engine holding all preferred lender rate sheets. Vantage believes there is a significant advantage for their clients on pricing and execution when lenders compete for their business. They make rate and program option selection very clear by comparing several rates against lender rebates (credits) and optional buy-down costs. Consumers are only able to access the advantages this channel offers through a “true” mortgage brokerage such as Vantage (not those claiming to be both a “banker” and “broker” which can be deceiving as credit lines take away all advantages of being a broker). Vantage Mortgage Group again supports competition and choice under any channel for consumers, but offers this uniqueposition for their clients that very few still do. They believe that their position, combined with their elite experience, produces a favorable outcome for clients which has been proven through their reputation and hundreds of testimonials.
Contact Vantage Mortgage Group today and experience what others are talking about!
“Our main objective is to educate consumers on how residential mortgage financing works in the United States. We do not have sales people, we have mortgage professionals that persistently educate our clients. We embrace only math and facts rather than sales terms and strategies. We rely on indisputable data to attract those that wish to be in a better financial position with their mortgage liability. When it comes to math, combined with our reputation, our position is also indisputable. We are the only channel in the primary mortgage market that works exclusively for our clients. The more educated the consumer, the greater chance they will become a Vantage client when comparing mortgage providers.”
“Obtaining a new loan for the purchase or refinance of a home is a very important financial decision. We have created a smooth, informative, and stress-free loan processing system we have found to best suit whatever lending climate we are facing. We believe that every client requires our full attention so that no details are missed and loan options are specifically customized for each borrower. Client and business partner testimonials consistently confirm that we are meeting or exceeding our goals in customer satisfaction.”
“Low over-head, effective systems, and heightened industry-related education requirements allows our clients the ability to experience more qualified representation at a lower cost.”
– Andy W. Harris, President
Vantage Mortgage Group, Inc.
We consistently strive to offer consumers the best possible mortgage experience by using a transparent and systematic approach that makes lenders compete for your business. The more educated the consumer, the greater chance they will become a Vantage client when comparing mortgage providers. Don’t just take our word for it, here are some reviews that our past customers have left!