Competition is healthy when you are a consumer. It helps you to stretch your dollar and give you the right to demand a certain level of quality service in exchange for your hard earned money. On the flip side “big box” operations have swallowed up mom and pop stores from hardware to records shops, killing competition and affecting local economies.
Nowadays, “big box” competition has gone from retail and have impacted the real estate business. Mortgage brokers and foreclosure professional are the latest prey of “big box” or better yet “big brother”. Local government municipality are purchasing REO properties (bank owned foreclosure) using stimulus money. The FHA is directly funding loans using stimulus money to offer “low down payment” programs and money is circulating within a very tight circle, leveraging laws against the competition. There are also, ads from local, state and federal governments that indirectly label working as a foreclosure solutions provider as a “scams”, a new law that prevent upfront compensation for loan modification work, and an effort to streamline short sales directly between banks and realtors. Maybe “bigger is better”, but in this case big monopolies, mean bigger problem for smaller companies.