Runner. Mortgage lender. Bank loan officer. They are all the same. Their job is to sell you mortgages. Period… Well, not exactly. While all three are closely related, the nature of their works deviates slightly from one another.
Contrary to popular belief, brokers do not work for the loan company or any lending organization or business. A mortgage broker is a real estate financing professional who works independently of a lender. A broker concentrates on the instigation of residential or commercial mortgages. The lending company is the “wholesaler.” The actual financing and servicing of these loan “wholesalers” is provided by the broker.
Basically, mortgage brokers are independent agents who work with (not for) various wholesale lenders. Nearly half of all residential real estate loans in the United States are promoted by brokerage firm operations.
Brokers have direct access to hundreds of loan products. Because of this, brokers are the best when it comes to providing consumers with cost-effective and efficient options that are tailored to their specific lending needs. The broker assesses and provides an assessment based on the financial details provided by the client. Using this information as leverage, the broker would then search through hundreds of published rates to find the best one for the client. In this way, a mortgage broker not only provides their clients with experience and convenience, but also with choice.
Mortgage loans are a complicated task. Mortgage brokers act as guides for consumers, helping them through the entire process. When confusion arises, brokers help dissipate it by offering extensive options and advice to help the consumer stay financially balanced with their goal.
When customers have bad credit or unappealing credit histories, mortgage brokers help them get loans by finding loan companies that are willing to let these types of consumers borrow money. Mortgage brokers also use innovative loan packages to allow low- to moderate-income customers to enjoy the benefits of homeownership.
Mortgage brokers help consumers save time, money, and effort. Because brokers provide an assessment of their clients’ financial health, they can easily focus on products that more or less cover and fit clients’ needs. This makes the job easier and requires less time. Brokers maintain contacts with various loan companies. This allows brokers to get the cheapest loans for their clients.
Established in 1973, the National Association of Mortgage Brokers is the leading trade association representing the community. The association is affiliated with 46 states in the United States and promotes the professional certification of runners.
Brokers who are members of the National Association of Mortgage Brokers are required to follow the association’s code of ethics and uphold only the best lending practices in their profession. The broker acts as a liaison between the lender and the borrower. A broker is responsible for bridging the gap between these two. Such a great responsibility requires a broker to be completely thorough in his dealings with both and in the mortgage process.