A Mortgage Broker is a company or individual that charges a commission and brings together lenders and borrowers for the purpose of loan origination. The primary function of the Mortgage Broker is to ensure that the borrower finds a perfect match in the form of an ideal lending institution. The deal should be such that it not only benefits the borrower but also represents a solid and good investment for the lending institution.
A loan officer works directly for the mortgage loan company. The function of the loan officer is to take in the applications and ensure that the borrowers are well-educated about the nature of the loan and are clear about the financing process.
The rules and policies for obtaining a mortgage broker license differ from state to state. Each state has its own statutes, rules and regulatory agency that govern the mortgage industry. Most states require that mortgage brokers obtain a valid license before they can operate their mortgage brokering business. It is imperative that you find out the rules and regulations pertaining to specific education or experience requirements, insurance, net worth, and other data in your state for obtaining a mortgage broker license.
How are mortgage brokers different from mortgage bankers?
Mortgage banker is the lending institution whereas mortgage broker works as an agent of a number of lending institutions. A mortgage banker is the lender, the one making the loan directly. When you approach a mortgage banker, you will get a list of mortgage loans and schemes from that particular banker only. Whereas the responsibility of a mortgage broker is to find the mortgage loan that best meets the criteria of the borrower from a pool of mortgage loans. The difference is the number of choices you get when you choose a mortgage broker. If you are confident about the mortgage banker and the schemes offered to you and have made up your mind that you want a particular mortgage banker to finance your loan, then you do not require the services of a mortgage broker. The broker does everything that the lender or a mortgage banker is expected to do, such as checking your financial records, personal history and so on. But once your loan application is compiled along with required data, the broker will select a suitable mortgage lender that is most likely to accept your application based on your financial and personal information.
What skills are expected from a mortgage broker?
If you are looking for a job at a mortgage brokerage firm or mortgage lending institutions, ideally you should have the following skill sets:
• A college degree or equivalent
• Previous experience in either mortgage industry or
sales industry is recommended. Any experience in a non-mortgage
industry should prove that the individual is able to utilize
the experience for the mortgage origination.
• Excellent communication and inter-personal skills
• Computer word processing skills along with typing
skills and the ability to use the Internet is a plus
Mortgage brokers and loan officers earn their income mainly
through commission. The amount of commission received by the
broker is based on the volume of loans made and the overall
performance of the broker. A number of mortgage brokers start
their own companies after gaining considerable experience
with a reputed mortgage brokerage or lending firm.
Related Mortgage Career Topics:
Article Source:
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