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A mortgage
broker acts as an intermediary who sells mortgage loans on
behalf of individuals or businesses. Normally, banks and other
lending institutions have sold their own products, but as
the market for mortgages has become more competitive, the
mortgage broker has become more popular.
General Duties of a mortgage
broker
-
Attracting clients with
marketing.
-
Estimation of the
borrowers borrowing ability.
-
Finding a mortgage
product that fits the clients needs.
-
Getting a pre-approval
from a lender.
-
Acquiring all
documentation.
-
Completing the loan
application.
-
Making sure all the
disclosures have been satisfied.
-
Sending all loan package
to the lender.
There are
approximately 53,000 mortgage brokerage companies and they
originate 68% of all residential loans in the U.S. according
to a 2004 study by Wholesale Access Mortgage Research %
Consulting, Inc.
A mortgage broker channels
information between the buyer and the lender. Most states
require the mortgage broker to be licensed.
A mortgage broker is normally
registered with the state. He has a legal, moral, and
professional responsibility as well as liability to prevent
fraud and fully disclose loan terms to both the borrower and
the lender.
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