A mortgage broker is an individual or business who helps a borrower to get a loan. In most cases, mortgage brokers are independent contractors, helping finance companies obtain the best loans for their clients. Mortgage brokers may work directly with homeowners, banks, or mortgage companies to find the best loan for borrowers. They can also be employed by financial institutions to refer borrowers to lenders, or directly. In general, mortgage brokers earn a commission when a borrower takes out a loan from a particular company. Have a look at Check Out This Local Mortgage Broker Company. for more info on this.
Mortgage brokers can be divided into three main groups: licensed mortgage lenders (usually run by banks); independent loan officers; and independent sales agents. Licensed mortgage lenders are usually larger financial institutions such as banks, credit unions, and thrift associations, while independent loan officers are people who have worked in the industry for years, typically by being employed by large mortgage companies. Independent sales agents, on the other hand, are independent business people who work on commission and deal with lenders as an independent contractor.
Mortgage brokers vary greatly in the number of lenders they service. A few brokers are one-stop-shops for all types of lenders; others serve only a small area, working with a select few lenders. Mortgage brokers can take on a wide variety of different clients. For example, they can take on an exclusive contract to work with subprime borrowers, working directly with lenders to obtain loan applications and processing them. Some mortgage broker companies work solely as independent contractors, allowing them to take on a large number of loan applications, process them independently, and pass the information on to other lenders.