Mortgage brokers do exactly what their title says, they broker loans for lenders to the borrowers.
Mortgage brokers traditionally work what we refer to as the the wholesale lender, and they work as many of these wholesale lenders as possible in the process of trying to obtain the cheapest money.
What the mortgage broker actually does is present the wholesaler's price to the borrower to which the mortgage broker also adds their own fees in the form of fees for originating the loan, fees for any additional discount points that they might work into the loan for the borrower. and other miscellaneous fees.
Can you identify some of those miscellaneous fees?
Wholesaler's usually don't have the kind of overhead that a mortgage broker will have to run the business, so the wholesaler can discount the loan price to the mortgage broker so that the mortgage broker can add fees to the loan and still be competitive with other lenders.
One important aspect of the mortgage broker is that they may offer a very wide range of products both residential and commercial.
The mortgage broker has become a very important player in the lending arena today because of the dramatic increase in the purchasing of wholesale mortgage loans.
Because of their popularity, much more regulation is being sought to insure the quality of loan origination through the mortgage broker.
We hear all too frequently these horror stories about borrowers going to shady brokers who make these wild promises about ridiculous loans that don't exist and collect bogus fees including nonrefundable application fees for the loans.
Even worse than that are these incredibly tragic stories about borrowers dealing with mortgage brokers who didn't know enough about mortgage lending to see throught the loan process correctly.
The results, because of the mortgage broker's inexperience, have dealt severe blows to unsophisticated borrowers.
Some mortgage brokers have even gone so far as to take loan applications without knowing whether or not they can find a place for the loan.
The problem with this creepy scenario is that the fact that the loan can't be placed isn't revealed to the borrower until the last minute after the broker has exhausted all of the options to try and secure the loan, and in reality hasn't got a lender to work with.
The borrower has lost valuable time.
Check out the broker real carefully before making any loan applications.
The best mortgage brokers can be your life line to a real healthy financial situation ,making your future a great one and will help you sleep better.
The worst mortgage brokers can destroy you and your family and cripple you financially.
What are your experiences with mortgage brokers? Mortgage brokers, I invite your comments.
Please be advised that:
The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.
By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.
Before you even think about committing a real estate crime
click this red button.
"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."
© All Rights Reserved.
Department of Justice Legal Policies
Click "HERE" For Today's Question
David Saks Show
University of Memphis
Mr.Saks' participation in ActiveRain ended April 13, 2015.
His blog archives will remain online.
May God bless you.