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Bigger companies buying up smaller ones

Posted on: 21st Jan, 2008 01:54 pm
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?
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
Posted on: 21st Jan, 2008 04:54 pm
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.
Posted on: 21st Jan, 2008 10:52 pm
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