Mortgage brokers have become an important part of bringing financing to homeowners. Banks and credit unions offer consumers services that brokers cannot, but they also have more regulation and hold much higher standards than brokers.
Generally speaking, mortgage brokers are licensed loan officers. According to a 2004 study by Wholesale Access Mortgage Research and Consulting, Inc. Mortgage brokers are responsible for nearly 50% of all the mortgage business in today's marketplace. The mortgage banking industry is regulated in most jurisdictions to meet the banking and finance requirements of its region.
Loan officer are employees of their banking institution. Perhaps you have built a long relationship with your bank and can get a loan on a whim. For many consumers, a bank is the only financing vehicle they would ever consider because they like the relationship and the atmosphere of a bank. It is not only the relationship with your favorite teller that entices consumers to stay with banks. Today there are so many services such as online bill pay and financial planning, that the consumer feels as though they have everything they need for their bank account under one roof.
Brokers can shop the loans around to many banks and assemble a far more beneficial financing package to their clients. This situations often help clients with a less than stellar background as if gives them an opportunity to build their credit and their clean up their history. Many times brokers create customers for life because they have become a lifesaver to the consumer and have created tremendous loyalty.
A broker works exactly like the loan officer when in handling the process of a real estate transaction or any financing situation. The broker will collect all the paperwork and documents that are needed. They work with the many banks that offer options for the consumer and present all possibilities to both parties. The broker will usually close the loan and will also work as a intermediary between the real estate agent and the client and the bank.
Mortgage brokers make money by the fees they receive from either the consumer or the lender. Mortgage Brokers are paid a commission through a Yield Spread Premium. This is a bonus paid by the lender to the mortgage broker and is generally a percentage of the original loan. In most cases the commission rate is 2% of the loan amount.
Brokers must be licensed and spend time taking mortgage broker courses. There are regulatory commissions that monitor practices in all part of the world. This has helped in regulating the industry to ensure that the consumer and the broker are protected with knowledge and practice of the law.
Laws have been strengthened since 2007. But it is still recommended that consumers shop for a broker like they would a home and to be careful when working with a bank or a mortgage broker when closing on a home.
Generally speaking, mortgage brokers are licensed loan officers. According to a 2004 study by Wholesale Access Mortgage Research and Consulting, Inc. Mortgage brokers are responsible for nearly 50% of all the mortgage business in today's marketplace. The mortgage banking industry is regulated in most jurisdictions to meet the banking and finance requirements of its region.
Loan officer are employees of their banking institution. Perhaps you have built a long relationship with your bank and can get a loan on a whim. For many consumers, a bank is the only financing vehicle they would ever consider because they like the relationship and the atmosphere of a bank. It is not only the relationship with your favorite teller that entices consumers to stay with banks. Today there are so many services such as online bill pay and financial planning, that the consumer feels as though they have everything they need for their bank account under one roof.
Brokers can shop the loans around to many banks and assemble a far more beneficial financing package to their clients. This situations often help clients with a less than stellar background as if gives them an opportunity to build their credit and their clean up their history. Many times brokers create customers for life because they have become a lifesaver to the consumer and have created tremendous loyalty.
A broker works exactly like the loan officer when in handling the process of a real estate transaction or any financing situation. The broker will collect all the paperwork and documents that are needed. They work with the many banks that offer options for the consumer and present all possibilities to both parties. The broker will usually close the loan and will also work as a intermediary between the real estate agent and the client and the bank.
Mortgage brokers make money by the fees they receive from either the consumer or the lender. Mortgage Brokers are paid a commission through a Yield Spread Premium. This is a bonus paid by the lender to the mortgage broker and is generally a percentage of the original loan. In most cases the commission rate is 2% of the loan amount.
Brokers must be licensed and spend time taking mortgage broker courses. There are regulatory commissions that monitor practices in all part of the world. This has helped in regulating the industry to ensure that the consumer and the broker are protected with knowledge and practice of the law.
Laws have been strengthened since 2007. But it is still recommended that consumers shop for a broker like they would a home and to be careful when working with a bank or a mortgage broker when closing on a home.
About the Author:
A career as a Mortgage broker can be very rewarding. If you have a good head for numbers, consider enrolling in Mortgage broker courses.
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