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Mortgage Banker vs. Mortgage Broker
BY Walter Robinson
A mortgage broker acts like an ambassador on the behalf of an individual or business.
Historically, banks have used there own line of financial options. In recent years the mortgage field has become more competitive. The role of the mortgage broker has become more popular. Mortgage brokers account for 80%25 of the loan transactions today.
Why use a mortgage broker? In advance mortgage markets many lenders use savvy rate offers and other incentives to attract customers. *To many consumers, due to their infrequent purchases of mortgage products, the mortgage market may appear confusing and somewhat daunting. A mortgage broker can guide them through the process of selecting a suitable mortgage and offer mortgage and property related financial advice.
For borrowers with poor credit records, or other unusual circumstances, finding a lender may be difficult. A mortgage broker, having specialized knowledge and multiple lending sources, will normally be a valuable resource in obtaining financing. (*Wikipedia)
Mortgage Bankers are competitive in mortgage lending as they specialize in only lending, and do not have to factor in subsidizing any losses in other departments such as traditional banking. Sometimes they do not have the same access to low cost adjustable rate mortgages.
A Mortgage Banker can be a person, company or financial institution that on its own or with the help of loan officers originate, service and sells mortgage loans on the secondary market.
It is easy to confuse a mortgage banker with a mortgage broker. These are completely different mortgage terms that have a clear distinction. The distinction lies in the fact that a mortgage banker originates, sells and services the loans whereas a mortgage broker only brings the two parties, mortgage banker and borrower together.
I will end with this analogy. If a Mortgage Broker was one of the major retail food chains such as a Cosco, Shoprite, or Sams Club. And let's say a Mortgage Banker was your local corner store or deli. A Deli will not have the same variety as the major shopping centers. When you have more variety you will have a better chance to find the right product for your situation. http://www.onlinemortgagedepot.com/ is a great resource for all of your mortgage needs.
ABOUTH THE AUTHOROne Stop Shop for all of your mortgage needs. |
