Who Else Wants to Know the Attributes of a Mortgage Broker?
Who Else Wants to Know the Attributesof a Mortgage Broker?
Basically, a mortgage broker refers to the middleman or intermediaryperson who brokers housing loan between a seller and a buyer. Banksand other similar institutions used to sell their properties directly to thebuyer; due to the growing competition in the market, however, theservices of mortgage brokers become indispensable. This is true inadvanced countries such as Australia, Canada, Spain, New Zealand,United Kingdom, and United States of America.The role of mortgage and loan brokers have become popular inAustralia in the early part of 1980s; these brokers dominated themortgage industry in the later part of 1990s. A number of legislativemeasures were then enacted, including responsible lending andlicensing regime. Up to this time, property brokers play a vital role inthe States real estate business.For a more detailed discussion regarding the role and characteristics ofa mortgage broker, read on below.1. A CONDUIT BETWEEN PARTIES. A mortgage broker isresponsible in establishing connection between the buyer and theseller, or between the lender and the buyer. Once the parties areagreeable on the terms embodied in the mortgage agreement, thebroker ensures the consummation of such agreement.2. LEARNED ABOUT BANKING ACTIVITIES. Often, mortgage brokersare required to have good appreciation of a number of banking lawsand financing rules. In other jurisdictions, it is a plus factor for a brokerto know about retail banking, business banking, corporate banking,land mortgage banking, private banking, and investment banking. Thereason for this is simple - banks and financial firms are profit-oriented,hence, they prefer to deal with persons learned about banking terms.3. AN ADVISER. In the United Kingdom, for instance, people handlingmortgage brokerage and home loan matters are necessarily working onand dealing with regulated financial activities.
Thus, the mortgage broker is usually responsible in giving appropriateinformation and advice to potential borrowers based on the latterscapacity to pay and circumstance. In fact, brokers can be made liable iflater on the advice he gave is found inappropriate. In other places,however, brokerage activities are limited to client hunting and saleswork.4. PERFORMS TECHNICAL WORKS. The extent of services renderedby mortgage and property brokers largely depend on their capacityand attached liabilities. Mainly, they perform the following technicalworks: assessment and verification of the borrowers financial condition,assessment of the properties available in the market, processing of thelenders application papers, selection of the documents required, andconduct legal disclosures. Also, they make sure that their clients areable to save money by giving out appropriate product and financialadvice.The role of housing unit brokers and home loan specialists are seriouslyregulated by the Australian Securities & Investments Commissions toensure compliance with the number of banking laws and financedecrees. More importantly, such regulation policy is for the protection ofthe welfare of the consuming public.