Question:

What is a mortgage broker company?

Answer:

A mortgage broker company serves as an intermediary between a lender and a borrower. Mortgage brokers do not fund loans; they only locate the right loan for the client. A mortgage broker company employs loan officers to collect paperwork from borrowers and passes it to the lender. A mortgage broker is compensated through broker's fee and yield spread premium.

Mortgage broker companies are a little more complex entities than a mortgage broker individual. They are still only responsible for locating the most suitable loan for the borrower among tens and hundreds of lenders, and do facilitate transactions for lenders and bankers.

Licensing requirements for mortgage broker companies differ by state. If you are interested, you may have to check your state requirements.

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Common misspellings: mortage and morgage