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Mortgage Broker Careers

Aug 17, 2007
Mortgage Broker

A mortgage broker is someone who arranges mortgage loans for individuals and businesses. He is different from a loan officer who is the employee of a particular lender. Mortgage brokers are the largest distributors of mortgage products in developed mortgage markets like the U.S., Australia, Spain, Canada and the United Kingdom. People tend to confuse mortgage brokers with lenders. A mortgage broker offers loan products from various lenders to borrowers. He actually works with a number of lenders, and therefore has information about various mortgage options that are available, and is able to advise and help the borrower in securing a mortgage loan.

The lender is the one who actually funds the loan. The mortgage broker does not have any funds of his own involved in funding a mortgage loan. As the role of a mortgage broker is of a vital nature, most people prefer to engage the services of a CMP (Certified Mortgage Planner) who is licensed, and has to undergo rigorous training and tests before receiving certification. CMPs work in concert with CFPs, or Certified Financial Planners, to ensure that the best products are available to the borrowers of home mortgages.

Functions

Nowadays, due to competitive market conditions, lenders have a plethora of offers at various rates. Since the general borrower is usually not conversant with financial products, a mortgage broker is able to advise the consumer on the best offers according to his needs. The broker also takes care of the entire procedure of securing the mortgage for the borrower, along with proper advice regarding the mortgage and the property offered against it. Mortgage brokers are especially useful for borrowers with poor credit records. Since they often find it difficult to secure a mortgage, the broker is usually able to obtain the required finance, as he is in touch with different lenders and is aware of their terms.

A summary of the work of a mortgage broker includes:

-Marketing for client generation
-Making as assessment of the borrower, based on credit reports and income documentation
-Recommending a suitable product, according to the financial standing and need of the consumer
-Making an application for a pre-approval lender's agreement
-Compiling all documents that need be submitted for mortgage processing
-Correctly filling in the details required in the lender's application form
-Clarifying and explaining the requirements of legal disclosures
-Forwarding completed forms and documents to the lender

The mortgage broker's services are limited to providing assistance up to the closure of the mortgage loan. Once that is done, all dealings are thereafter to be between the lender and the borrower.

Earnings

The earnings of mortgage brokers are from commissions payable for bringing together lenders and borrowers. Generally, the borrower pays it in the form of additional loan points or closing costs, which is paid to the mortgage broker only after closure of the loan.

A career as a mortgage broker is very satisfying, and involves helping people obtain loans against their homes, at rates suitable for their requirements. A mortgage broker can also help homeowners sell or purchase property within their specified requirements, due to his vast connections with lenders and other borrowers of home loans. It offers handsome financial rewards for services rendered.
About the Author
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
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