Mortgage Brokers West Vancouver
Mortgage Broker Responsibilities - Six Main Categories
A mortgage broker acts as a liaison between the borrower and the lender. Businesses or individuals come to them and request
that they broker mortgage loans on their behalf.
Before it has been up to the other lending institutions and banks to sell their own products. Then again, as the market becomes
more competitive, businesses are beginning to rely on the services of a mortgage broker. In the majority of real estate markets,
particularly those within the US and Canada, the largest sellers of mortgage products are mortgage brokers. The broker is
responsible for finding a particular bank or lender that would provide a loan to their client. In Canada, mortgage brokers are paid
by the lender. Fees are only charged to the borrower if they have credit that is below average.
Governmental policies have been set up to help regulate mortgage brokers in order to make certain that they are operating under
banking and finance laws. However, each jurisdiction would have different policies that the brokers within the area should abide
by. There is only one state within the United States where mortgage brokers are not regulated.
The broker has many jobs that they carry out. These responsibilities can be divided into 6 main categories, including: Retail
Banking, where the broker deals with individuals and small businesses directly; Business Banking, where services are offered to
mid-market businesses; Land Mortgage Banking, that deals with serving land mortgage loans; Corporate Banking, which is
directed at large companies in particular; Private banking, that deals with high net worth individuals and their families; and
Investment banking, that only relates to activities on the financial markets.
Most of the banking and lending institutions are privately owned making profits and there are a few government run backs that
operate as non-profits. Central banks are the most common banks that are owned by the government. Central banks are normally
given the task of supervising several commercial banks or controlling the interest rate. In case of a crisis, they could also act as a
last resort lender.
A mortgage broker's activities change depending on which jurisdiction they are situated in. In several places, a mortgage broker is
responsible for the advice they provide to their customers. They are held financial liable if the advice prove to be detrimental to the
customers best interest. However, in other places the broker may be limited to a sales job that just directs their client to another
lender and receives a commission from the lender.
The mortgage broker will commonly administer the same responsibilities. Promotion is the first task used to attract customers and
to evaluate the financial condition of the borrower. This includes analyzing the clients affordability and credit history. The next step
is to look through all of the available lenders to find the ideal mortgage product for the customer. Lastly, they would apply for a
lenders contract, gather the required documents, and complete the application form of the lender. After the legal disclosures have
been explained to the customer, the material is all given to the lender and the deal is closed.