A mortgage broker acts as the distributor of mortgages on behalf of the lender. Most mortgage brokers are regulated to ensure that they comply with finance and banking laws within the consumer’s jurisdiction.

 

Mortgage broker services are responsible for ensuring that any financial advice that is given is appropriate for the borrower’s situation. In some jurisdictions, the mortgage service broker may be limited to guiding the borrower in the right direction to obtain an appropriate lender. In this case, the mortgage broker offers no advice in actual lending terms.

 

A broker’s level of involvement in transactions depends on the abilities of the individual broker. It also depends on the level of service offered at the brokerage. Typical tasks for mortgage broker firms include the following services:

* Marketing in order to attract clients
* Interviewing prospective borrowers
* Assessment of borrower circumstances, which may include an interview, a credit history and income documentation
* Market assessment to meet client needs
* Mortgage presentation and recommendation
* Assisting with borrower application, pre-approval and lender application form
* Documentation gathering and preparation
* Explaining legal disclosures to borrowers
* Material submission to lender

 

Banks have begun using brokers as a medium to outsource the task of finding and qualifying potential borrowers. This also allows them to outsource some of the liabilities involved with brokering.

Mortgage Broker or Loan Officer?

Mortgage Brokers

* Typically works with both the lender and the borrower
* Normally registered
* Personally liable for fraud for the life of the loan
* Makes more money on a per loan basis

 

Loan Officers
* Usually works directly for the lender
* Works under an employer's umbrella license
* Can make use of the referral network belonging to the lending institution they work for (This allows them to sell more loans)

Both the mortgage broker and the loan officer have professional, legal and moral obligations. They also both have liabilities to avoid fraud by demanding that they fully disclose all loan terms to both the buyer and the lender.

The mortgage broker services industry is a very competitive field. A large portion of the mortgage finance industry is commission-based. Potential clients can compare terms through Internet quoting and advertising.

 

Quality service should consist of:

* International servicing
* Finding the best loan for your individual needs
* Trained consultants readily available to you
* Maintaining care for your finances from beginning to end and after
* A wide range of options for financing
* Quality and customized service
* Access to top lending institutions
* Working at your convenience
* Specializing in mortgage loans
* Paying for the broker costs, not making you pick up these fees

 

Your mortgage broker service should specialize in home loan financing, but excel in other areas as well. These include:

* Home loans
* Commercial loans
* Personal loans
* Equipment finance
* Debtor/invoice financing

 

When choosing a mortgage broker service, it is important to be sure you have made the right decision for your needs. The service needs to have access to a good number of lending institutions. They should also be accredited and have thorough training to adhere to all legal and ethical standards.

Your mortgage broker service should have extensive experience in sales and customer service. They should also be enthusiastic about overseeing your loan through the whole process. A qualified and experienced mortgage broker service should offer you the maximum benefits possible while taking care to educate you about every aspect of the process. Look for a service that offers you all of these qualities before placing your financial future in their hands.