Bigger companies buying up smaller ones

jbarto65 · Joined: 04 Nov 2007 Posts: 627 0.00 Dollars($)

Do you notice a trend of the bigger corporate mortgage companies buying up the smaller ones? What are the pros and cons of this happening for the consumer?

I see some that may be useful

1. They can offer more options.
2. More competitive rates because they are bigger.

can you offer anymore pros and cons please?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi jbarto,

You have rightly pointed out the trend bigger corporate mortgage companies buying small companies.

There are both pros and cons of it.

Pros-
1. Big companies are more reliable.
2. They have good will over the year.
3. They can provide you better service than the smaller ones.

Cons-
1. Chance of monopoly.
2. In smaller companies consumers and company are like family. So they may help you better in your problem.

There are a lots of other points and I think a lender can really give it a better answer. So waiting for some lender give their views on it..

Best of luck,
Larry

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

I think it's a good thing that companies are consolidating to reduce the over saturation of mortgage companies out there. It will also allow some of the smaller companies to grow.

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