Mortgage Broker Courses Keep Agents Sharp

Mortgage brokers act as intermediaries between the client and the lender. Traditionally banks and lending institutions sold their own products but as the market became more competitive the role of the mortgage broker or mortgage agent grew. Today mortgage brokers are the largest sellers of mortgage products for lenders. A fee is charged for the service of finding the right lender for a client and processing the loan through underwriting. Most brokers are regulated to comply with banking and finance laws in their area.

It is the job of the broker to assess a borrowers circumstances including running a credit report, verifying income and assessing the market to find a product that fits the clients needs. They may also get pre-approval for the client in the case of a home purchase. The broker will have to gather all needed documents including pay stubs and bank statements, have the client complete an application form, explain legal disclosures, submit the package to a lender and offer the best loan for their client.

There are moral, legal and professional responsibilities and liabilities that are set in place to provide full disclosure protecting both the lender and the consumer from fraud. The broker is registered in the state he resides in and is personally liable for fraud for the life of the loan. Sixty-eight percent of all residential loans in the U. S. Originate from brokers.

One difference between working with a banker versus a broker is that the banker has access to short term lines of credit, also called warehouse lines, to fund loans and later sell them in the secondary market. After the loan is sold the warehouse lender is repaid and a profit is given to the banker with the borrower receiving a letter notifying them of the transfer or sale of their loan. Most loans done by bankers are sold.

Brokers have to disclose a yield spread premium that bankers do not. The Good Faith Estimate allows consumers to compare fees. The government requires this form because some brokers were quoting one rate and fees and changing it before the loan documents were drawn.

Basically, to be successful as a mortgage broker you should know the industry. Get to know the real estate agents in your area for leads and get to know the local market. Read banking trade magazines, business periodicals and real estate journals. Learn the loan and funding processes for the different types of loans that are available for your clients. The more connected you are and the more knowledgeable you are the more successful you will be.

You must be a people person and be good at relationship building as you will work with the same companies over and over like escrow agents, appraisers and lenders. You will need to be a salesperson as you are selling lending products. Discipline is key as you are your own boss. Make sure you understand the requirements of being an agent in the place that you live and take the necessary tests and courses you need.

Knowing the laws in the state you live in will prevent any problems in the future. If you choose to work in an office with others contact local mortgage firms that you can join. It’s nice to have the camaraderie of other agents who all have the sames goals.

A career as mortgage agent can be very rewarding. If you have a good head for numbers, consider enrolling in mortgage broker courses.