There has been a lot of press about Costco offering mortgages. But it doesn't. Costco is offering, and marketing, a mortgage product on behalf of other companies such as First Choice Bank. Reportedly Costco is not paid for the loans that close, or receive any sort of loan origination fee, but is simply partnering with First Choice Bank and several other lenders. And these lenders are leveraging the warehouse chain's loyal and enormous customer base.

First Choice has been around for five years, and is headquartered in New Jersey, and has five branches in that state. The lender only seems to offer conventional loans, FHA loans, and VA loans – no jumbo loans.

Industry experts are very skeptical about the program, although it is also expected to have an impact. Unlike other products Costco offers, by giving a discount in bulk, mortgages aren't less expensive in large numbers that would make sense to a consumer. And in fact consumers may become confused about the process, especially after a loan funds and the payments are being sent to other companies.

Publicity aside, the program is expected to compete more with organizations such as LendingTree. Costco customers go to a website that gathers quotes from various lenders. It is questionable how much impact the program has on borrowers who prefer the personalized touch that smaller lenders offer, the ability to meet with someone face to face, to analyze different programs and rates, and so on.

And these are attributes that Landmark Mortgage has. Our average Advisor has several years of experience working with borrowers under many scenarios, of sitting down with clients to discuss clients' financial situation and goals, and in determining the best home loan program.