Jim Simcoe isn't your typical mortgage broker. He's actually an EcoBroker, combining the traditional aspects of the real estate lending world with today's movement towards energy efficiency and environmental awareness.
Simcoe covers the North County, Calif., coastal areas for his company EcoLife Consulting. MortgageOrb caught up with Simcoe at his Encinitas, Calif.-based office to discuss the mixing of mortgage broker functions through a new green hue.
Q: What exactly is an EcoBroker, compared to a regular mortgage broker? And how does one become an EcoBroker?
Simcoe: An Ecobroker is a real estate agent or broker who has earned the EcoBroker Certification through EcoBroker International (www.ecobroker.com). There is a rigorous learning process you must undertake to earn this credential.
Being an EcoBroker means that you are committed to and versed in all environmental issues regarding green home building, maintenance and energy conservation. Less than 1% of the agents in the U.S. have earned this designation. When I became an EcoBroker, there were a total of 250 nationwide. There are now over 1,100. I was the first full-time EcoBroker in San Diego County – there are now six of us here.
Q: Who is the EcoBroker's typical client? And how do they find you?
Simcoe: The typical client is someone who is interested in green building or green living. They understand that living in a green home is more sustainable for the environment and healthier to live in. Most clients find me online at my site (www.ecolifeconsulting.com) or through word of mouth.
Q: In your experience, how has the mortgage banking community reacted to the concept of an EcoBroker?
Simcoe: Most mortgage bankers are curious to see what kinds of clients EcoBrokers have. What they find is that EcoBroker clients are less likely to switch mortgage brokers (if referred by an EcoBroker) over issues of rate or terms, for two reasons. First, they generally feel that if the broker is referred by an EcoBroker then that broker has a concern for the environment similar to theirs. This forms a natural bond of trust and commitment that doesn't occur when you are selling on rate alone.
Second, the clients think of the mortgage broker as being somewhat more experienced than the typical broker because they are working with an EcoBroker. Every experience is different, but that has been my experience since I've become an EcoBroker.
Q: While we are on the subject of green lending: in your dealing with mortgage bankers and customers, what has the reaction been to energy efficient mortgages? One would think they would be popular, considering today's housing and energy markets.
Simcoe: They're not, and here's the problem: the biggest disconnect is that most lenders are either not familiar with the product or they're not desiring to go through the extra paperwork to get those products done. And there's not much of a fiscal invective for mortgage bankers to learn about this product and participate in it. I've had customers ask for them, but when we turn to the mortgage banker, we're told there's not much difference between a regular deal and an energy efficient mortgage.
Q: Considering the respective states of the housing and energy markets, is this a good time to be an EcoBroker?
Simcoe: I think it is the best time to be an EcoBroker because you have very little competition in the marketplace. In my market, there are 20,000 licensees and less than 15 EcoBrokers. It is a specialization that allows you to be an expert in a field that is very important to the general marketplace right now.
