A Mortgage Broker
A mortgage broker acts as a liaison between the lender and the borrower. Individuals or businesses go to them and ask that they broker mortgage loans on their behalf.
Other lending institutions and banks were traditionally charged with the task of selling their products. As the market became more competitive, these businesses began to depend more heavily on the services of a professional mortgage broker. In nearly all real estate markets, mostly those in the United States and Canada, mortgage brokers are the biggest sellers of mortgage products. The broker is responsible for finding a specific lender or bank which would offer a loan to their client. Within Canada, mortgage brokers are paid by the lender. Fees are just charged to the borrower if they have below average credit.
For the most part, mortgage brokers are regulated by the government in order to make certain that they abide by finance and banking policies. However, each and every jurisdiction will have different regulations which the brokers in the area must follow. There is just one state in the US where mortgage brokers are not regulated.
The broker has many jobs which they perform. These tasks can be divided into 6 major categories, including: Retail Banking, where the broker deals with small businesses and individuals directly; Business Banking, where services are provided to mid-market businesses; Land Mortgage Banking, that deals with serving land mortgage loans; Corporate Banking, which is directed at large businesses in particular; Private banking, that deals with high net worth individuals and their families; and Investment banking, which just relates to activities on the financial markets.
Most of the banking and lending institutions are privately owned earning profits and there are a few government run backs that operate as non-profits. Central banks are the most common banks that are owned by the government. Central banks are usually given the responsibility of supervising other commercial banks or controlling the interest rate. In the event of a crisis, they can likewise act as a last resort lender.
Depending on the jurisdiction and location which the broker is located, their activities would change. Some mortgage brokers are likewise responsible for the suggestion which they tender to clients. They are held financial liable if the suggestion prove to be detrimental to the customers best wishes. Then again, in other places the broker could be restricted to a sales job that simply directs their customer to another lender and is given a commission from the lender.
The mortgage broker will normally administer the same tasks. Marketing is the first task utilized to attract clients and to assess the financial situation of the borrower. This involves analyzing the clients affordability and credit history. The next step is to scan through all of the available lenders to be able to find the best mortgage product for the client. Finally, they would apply for a lenders contract, collect the required documents, and finish the application form of the lender. Once the legal disclosures have been explained to the client, the material is all submitted to the lender and the agreement is closed.
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