They act as an intermediary between the lender and the borrower. They sell loans on behalf of the organizations and businesses. The brokers are regulated by local jurisdictions and are typically paid on a commission basis. This article provides an overview about the range of duties a qualified mortgage broker is expected to perform.
The mortgage broker is responsible for conducting the “fact-finding” interview. This is to determine the borrowers financial situation. This includes collecting credit information and conducting income verification.
The mortgage broker’s responsibility includes conducting adequate research to determine the most suitable loans that meet the clients’ needs.
The mortgage broker has to consult with the client to shortlist the most suitable loans. The mortgage broker then has to apply for loan pre-approval on behalf of the client, to the lenders.
It is the responsibility of the broker to ensure that the clients’ loan application is complete in all respects. This requires compiling all the required paperwork such as pay stubs, tax information, credit history and bank statements.
The mortgage broker is required by law to provide the clients with the “good faith estimate.” This is an itemized list of fees and costs applicable to the borrowers loan, and must be provided within three days of submitting a loan application.
It is the mortgage broker’s duty to explain the legal terms clauses and payment terms to the borrower.
The mortgage broker is expected to conduct business with integrity. This includes not withholding information and not misleading the borrower or the lender.