Just Say NO to Huge Megabanks
When the U.S. financial system collapsed in 2008, policymakers declared that history would never again be allowed to repeat itself, and immediately set about revamping the entire mortgage lending system. Congress passed dozens of new laws, including the Dodd-Frank Act, that were designed to aggressively crack down on the large retail banks who had wreaked havoc on the global economy.
However, in an incredible twist of fate, the large retail banks who were once deemed “too big to fail” have emerged from this regulatory backlash relatively unscathed, and with an even larger share of the mortgage lending pie. While smaller independent mortgage lenders have spent millions complying with the new regulations, the bad behavior of the megabanks continues unabated. Just this week, in a particularly egregious incident which set a new world record for predatory lending, the CEO of Wells Fargo Bank was forced to admit its employees had signed up thousands of customers to phony checking accounts.
We have to ask ourselves, “When will this all stop?”
It will all stop when consumers stop taking their business to the likes of Wells Fargo and the other megabanks. After hearing about Wells Fargo’s shady sales practices, why would any person want to give Wells Fargo their home loan? How would you know if your home loan was part of some shady sales quota or not? The answer is you won’t. Remember, there is no greater power than the “power of the purse string”. Just say no and take your business elsewhere.
By contrast, James B. Nutter & Company, an independent mortgage lender based in Kansas City, Missouri, has been in business for decades and has steadfastly refused to inflate their fees or steer their customers to subprime loans. They’ve built their business on charging low fees to their customers and servicing their own loans. According to CEO Jim Nutter, Jr., “We’ve always believed that if a loan isn’t good for the customer, it’s not good for our company. If the megabanks had followed that simple philosophy, we probably wouldn’t have had a recession.”
Having the same mortgage lender service your loan also provides you with peace of mind. As CEO Jim Nutter, Jr. explains, “You’d be surprised how often we’re asked by one of our customers if we’re going to service their loan and when we tell them yes, you see a sense of relief and a smile appear on their face. People really love that.”
It may be hard to believe, but consumers like you have the power to change the behavior of the huge megabanks once and for all. If you’ve had enough of being treated like just another number, or worse, another statistic on the way to meeting a shady sales quota, then take your business elsewhere. You’ll generally pay lower fees and your customer service experience will be much nicer.