Docstoc

Mortgage Broker

Document Sample
Mortgage Broker Powered By Docstoc
					Mortgage Broker
Mortgage Broker is defined as a person who acts as an emissary who
surrogates mortgage loans in place of individuals or businesses. With the
increasing demand for mortgages to clear off previous debts, the role of
mortgage broker has become very popular. Today, in most developed
countries, mortgage brokers have become an unchallenged distribution
source of mortgage products for the lenders. A certain amount of
regulation is imposed on the mortgage brokers to ensure a level of
protection for the consumer. It is the judiciary of the country which
decides the regulations.
In today's competitive market, lenders are bringing out a vast bunch of
rate offers and incentives to attract customers. Plus mortgage purchases
unlike grocery purchases are once in a lifetime activities. Many times
the consumer gets confused and ends up making the wrong decision. This is
where a mortgage broker steps in. He is the one who gives financial
advice to his customers and makes them choose the best deal. Speaking
more clearly, a broker is the one who does not close in his name. Also he
the one who has to uncover his yield spread premium. A broker can be most
useful for people with poor credit limits. In such situations finding a
lender becomes difficult and a broker is the one who can help this
borrower.
The tasks of mortgage borrowers vary with jurisdiction. For example, in
the UK, it is the broker who is responsible for giving advice to the
borrowers according to the circumstances present before him. And it is
the broker who is financially held liable in case the advice given is
found to be defective. In some other jurisdictions, a broker's job is
only to show the address of various lenders and not to provide any legal
advice.
Some of the common jobs of brokers are attracting clients through
marketing, assessing the borrowers' circumstances, finding a proper
mortgage which suits their clients, talking with the lenders in
principle, collecting all the required documents, explaining all the
legal clauses to the borrowers and submission of all the materials to the
lender. Thus the job of a broker has a wide scope and a large number of
duties.
But there is a difference between a mortgage broker and a loan officer. A
market broker acts as a link between the customer and the lender. On the
other hand, a loan officer works directly for the lender. A mortgage
broker is registered with the state and he is personally held responsible
by the law for giving any defective advice. While, a loan officer
conducts his activities under the cover license of his current company.
Thus, we see that in this financially driven market, a mortgage broker
has a big influence on the mortgage decisions of every individual. A good
advice from the broker can pull out the borrower from any financial
trouble while a bad one might make him fall deeper into the trench. So, a
broker should be very well aware about the happenings in the market and
should develop a knack of taking the right decisions at the right time.
Jon Elton owns and operates a Car Home Life Insurance Quotes website to
help while making decision about insurance. He also operates a Cheap Car
Auto Insurance site to help taking decision about auto Insurance.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:22
posted:10/13/2010
language:English
pages:1