Thursday, September 27, 2007

Invasion Of The Subprime Mortgage Brokers

With the subprime mortgage bust, it's only natural that thousands, if not tens of thousands of mortgage brokers around the country are having difficulty making ends meet. There appears to be an astounding number of mortgage brokers looking to enter the merchant cash advance space. In the past few months alone, I have received a plethora of inquiries from mortgage brokers looking to resell our merchant cash advance product.

While there seems to be some similarities between the subprime mortgage space and the merchant cash advance space, there is also quite a bit of difference. I am hoping the subprime mortgage brokers learned their lesson and will act responsibily when selling merchant cash advances by not taking advantage of the merchant (eg. charging closing costs, application fees, etc.). Acting responsibly will ensure that this is a viable industry that will benefit the merchants, the merchant cash advance companies and their agents for the indefinite future. There is enough margin in the product to go around without having to be a pig.

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