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Mortgage broker
From Wikipedia, the free encyclopedia
Mortgage brokerage in the USA
Over 80% of home loans issued in the U.S. Today are negotiated by brokers. The banks have
used brokers to effectively out source the job of finding and qualifying borrowers, and also to out
source some of the liabilities for fraud and foreclosure onto the originators through legal agreements.
During the process of loan origination, the broker gathers and processes paperwork associated with
mortgaging real estate.
As of 2005, there are approximately 20,000 mortgage brokerage operations across the USA.
A mortgage broker acts as an intermediary who sources mortgages on behalf of individuals or
businesses.
Traditionally, banks and other lending institutions have distributed their own products. However as
markets for mortgages have become more competitive the role of the mortgage broker has become
more popular. Today in most developed mortgage markets (especially the U.S., UK, Australia, Spain
and Canada) mortgage brokers are the largest distributors of mortgage products for lenders.
Most mortgage brokers are regulated to some degree to ensure a level of consumer protection. The
extent of the regulation depends on the jurisdiction.
Why use a mortgage broker?
In competitive mortgage markets many lenders use an array of rate offers and other incentives to
attract customers. To many consumers due to their infrequent purchases of mortgage products the
mortgage market may appear confusing and somewhat daunting. A mortgage broker can guide them
through the process of selecting a suitable mortgage and offer mortgage and property related financial
advice.
For borrowers with poor credit records or other unusual circumstances finding a lender may be difficult
and therefore it may be necessary for them to consult a mortgage broker as they will have the
specialised knowledge required.
Tasks of mortgage broker
The nature and scope of a mortgage brokers activities varies with jurisdiction.
Therefore the work undertaken by the broker will depend on the depth of their service and liabilities.
Typically the following tasks are undertaken:
Marketing to attract clients
Assessment of the borrowers circumstances. This may include assessment of credit history, afford
ability (verified by documentation or otherwise).
Assessing the market to find a mortgage product that fits the clients needs.
Applying for a lenders agreement in principle (per-approval)
Gathering all needed documents (paystubs/payslips, bank statements, etc.),
Completing a lender application form.
Explaining the legal disclosures.
Submitting all material to the lender.
From Wikipedia, the free encyclopedia
Mortgage brokerage in the USA
Over 80% of home loans issued in the U.S. Today are negotiated by brokers. The banks have
used brokers to effectively out source the job of finding and qualifying borrowers, and also to out
source some of the liabilities for fraud and foreclosure onto the originators through legal agreements.
During the process of loan origination, the broker gathers and processes paperwork associated with
mortgaging real estate.
As of 2005, there are approximately 20,000 mortgage brokerage operations across the USA.
A mortgage broker acts as an intermediary who sources mortgages on behalf of individuals or
businesses.
Traditionally, banks and other lending institutions have distributed their own products. However as
markets for mortgages have become more competitive the role of the mortgage broker has become
more popular. Today in most developed mortgage markets (especially the U.S., UK, Australia, Spain
and Canada) mortgage brokers are the largest distributors of mortgage products for lenders.
Most mortgage brokers are regulated to some degree to ensure a level of consumer protection. The
extent of the regulation depends on the jurisdiction.
Why use a mortgage broker?
In competitive mortgage markets many lenders use an array of rate offers and other incentives to
attract customers. To many consumers due to their infrequent purchases of mortgage products the
mortgage market may appear confusing and somewhat daunting. A mortgage broker can guide them
through the process of selecting a suitable mortgage and offer mortgage and property related financial
advice.
For borrowers with poor credit records or other unusual circumstances finding a lender may be difficult
and therefore it may be necessary for them to consult a mortgage broker as they will have the
specialised knowledge required.
Tasks of mortgage broker
The nature and scope of a mortgage brokers activities varies with jurisdiction.
Therefore the work undertaken by the broker will depend on the depth of their service and liabilities.
Typically the following tasks are undertaken:
Marketing to attract clients
Assessment of the borrowers circumstances. This may include assessment of credit history, afford
ability (verified by documentation or otherwise).
Assessing the market to find a mortgage product that fits the clients needs.
Applying for a lenders agreement in principle (per-approval)
Gathering all needed documents (paystubs/payslips, bank statements, etc.),
Completing a lender application form.
Explaining the legal disclosures.
Submitting all material to the lender.
HomeLoans
4601 West Saginaw Ste J Lansing, MI 48917
4601 West Saginaw Ste J Lansing, MI 48917