Can you get the distinction between a mortgage banker and a mortgage broker? The primary distinction between the two groups of lenders is: 1) Mortgage Broker – they source loans with the goal of marketing them to bulk lending agencies; 2) Mortgage Banker – they are lenders large enough to originate loans as well as bundle pools of loans that they then market to one of the major three lending institutions – Fannie Mae, Ginnie Mae, or Freddie Mac – as well as jumbo loan borrowers.You may find more information at Derwent Finance Hobart.
The wholesale lender, the above big three, and jumbo borrowers are the ones who underwrite and finance the loans, not the mortgage broker. Typically, the broker has a contract with one of the main financial institutions and uses them to finance the rest of his or her mortgage loans. One of the benefits of having a mortgage broker is that they will choose the best lender for a borrower in a unique scenario and they are familiar with the hot spots of different wholesale lenders. The most valuable benefit is that if your loan is turned down for some reason, the broker will simply repackage it with another collection of loans and send it to a new wholesale lender.
Wholesale lenders hire mortgage brokers to act as their loan officers.
The broker obtains a reduced rate from the lender and then adds his premium to the rate. If the lender has put on a substantial compensation for himself, this usually adds up to similar to what you might have paid if you had gone straight to a mortgage banker. One of the advantages of having a mortgage broker is that they hire some of the most highly trained loan officers in the sector. However, this is not necessarily the case, since mortgage brokers often employ young brokers who are gaining expertise when working with the firm.
As a result, there’s always the possibility that you’ll get a young broker who is just getting started in the industry. This may pose problems if there is a problem with your property or the financial condition that the new guy hasn’t seen before.
An novice mortgage broker will not know what to do in most cases, while a seasoned one would. When finding a broker, you can be very cautious and aim to choose one that has a lot of experience. Another thing to watch out for is a dishonest loan manager, as there are unscrupulous characters in the mortgage industry, just as there are in any other industry. They could try to trick you by charging you much more for their services than a trustworthy loan officer might. It is important that you browse around and inquire about fees and expenses associated with services offered to you.
19 Macquarie Street
Hobart TAS 7000
(03) 6144 9669