Question:

What is a mortgage broker?

Answer:

A mortgage broker is simply someone who provides mortgage loans to borrowers. Banks, lenders and different lending institutions usually develop their mortgage programs and mortgage brokers cooperate with direct lenders to distribute them to consumers. In fact, more than 70% of all residential loans in the US are said to reach consumers through mortgage brokers, and only 30% go directly through lenders.

Mortgage brokers are regulated on a federal and state level. Only one state has no mortgage lending laws.

What are the tasks of a mortgage broker?

What a mortgage broker does depends on the type of activity they do - some brokers offer financial management to their clients, beside mortgage lending. Also, if the mortgage broker's activity includes financial activities they are financially liable and responsible for providing accurate advice appropriate for the client's circumstances.

Basically, the description of mortgage broker activities includes:

  • Shopping loans on behalf of the client;
  • Credit history assessment and possibly helping the borrower improve their credit;
  • Getting pre-approval on behalf of the borrower;
  • Gathering paperwork and forwarding it to the lender;
  • Explaining how mortgages and homeownership work and legal disclosures.
Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: