'They're so broken and compartmentalized… they don't even know what we know as brokers'
Approaching the halfway point of 2025, the mortgage market has been challenging for potential homebuyers and those looking to refinance a mortgage. One broker said it is critical for lending professionals to find creative solutions for potential borrowers.
Mortgage rates have remained elevated through the first half of 2025, and market turmoil caused by international tariffs has held off potential Federal Reserve rate cuts.
Thomas Sloan (pictured top) is a mortgage broker with GoRascal. He believes brokers working in the wholesale channel are uniquely positioned to help borrowers turned down by the retail channel.
“Even though the retail is the majority, it's the minority, because they're so broken and compartmentalized,” Sloan told Mortgage Professional America. “It's just different, little hidden areas. They just don't even know what we know as brokers. We're with 120 plus lenders, and all of them have their unique guidelines, and they all have a special product that we can leverage to help somebody who was told no by a lot of people.”
Sloan gave an example of a recent client who a big bank told that they would have to pay off a sizeable debt before closing, and would be limited to a smaller VA loan.
“There was this person that I just helped close on a home, who was told by a big bank that they would have to pay off $25,000 in debt, and that their max purchase price would be $350,000,” Sloan said. “And they would have to bring closing costs, which would be like $20,000. They ended up closing on a $575,000 home, with total cash to close of $10,000.
“But the loan officer at the bank told her things like, ‘The VA is very strict with credit. You have to have a 620 credit score minimum.’ Because that's what the bank had as their overlay.”
Concerned that so many are misinformed
Sloan wondered how many other borrowers may be misinformed about their options and either end up with a worse loan or no loan at all.
“If 75% of the industry is retail, how many of that 75% really believe the things that they’re selling are the only options?” he said. “What if they found out that it's not, and that it could help so many people? All these people that said no to them. These people kept renting. They gave up. They'll never buy a home because of information that’s incorrect. It's just mind-blowing.”
He said many of the clients he is working with need creative solutions to buy a home, especially in the current economic climate.
Melissa Cohn of William Raveis Mortgage says affordability, not interest rates, is holding the market back. With life transitions unavoidable and costs rising, she urges lenders to focus on realism and responsible lending. https://t.co/AHHipAWHyi
— Mortgage Professional America Magazine (@MPAMagazineUS) May 28, 2025
“Out of everyone who’s under contract right now that I’m helping, more than half of them need that creative solution, and would have been told no by 90% of the industry for sure,” Sloan said.
Sloan believes that home ownership is unique because not only does it help the new homebuyer, but it also helps the country be stronger financially.
“The country wants to help people in real estate,” he said. “This is money for the government, money for the person who is buying the house. It’s equity appreciation and all the positive stuff that comes out of it. It helps everybody grow.”
The strength of AIME
One of the organizations Sloan credited for the positive environment brokers work in is the Association of Independent Mortgage Experts (AIME).
“AIME is the key, and the majority of people in the wholesale channel don’t even realize,” Sloan said. “In 2021, I was a year into my full-time career as a loan officer. I flew to Las Vegas. It was the best thing, because I sat in the front row and listened to every single thing that was being said. I walked up to people, asked them questions, and put myself out there.”
He noted that he received more than training and assistance from being in the community. He also received several referrals.
“Last month, out of the 14 families I helped with new homes, six of those were referred to me by people in this community,” he said. “I think it’s a gold mine for people to get involved. You make relationships with people. We’re all doing the same thing that no one understands. It’s this foreign language that no one understands.”
When he recently encountered a difficult loan file, AIME stepped in and helped him get the file through underwriting.
“If you have an issue with a loan and the underwriter is fighting you, and they’re wrong, you can escalate it,” Sloan said. “They will go directly into leadership and bypass all the other things that are a waste of your time, and they will help you close the loan.”
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