2. MORTGAGE BROKER MODELThe Mortgage Broker such as LoanCentral, effective “Bypasses” the RETAIL branch and accesses the Lenders Pricing and Programs just as the Retail branches do. Because the broker has access to Multiple lenders Wholesale rates, Brokers can take advantage of lenders with the best pricing for loans available. Professional experienced brokers also know each lenders underwriting guidelines and which lenders are better for each borrowers individual situation.
3. PROTECTION FOR BORROWERSCurrent FEDERAL REGULATIONS require Mortgage Brokers to be Licensed, obtain pre-licensing education, pass a National and State Exam and take ongoing continuing education classes each year.Mortgage Originators who work for Lenders have NONE of the above professional requirements. They simply need to register with the NMLS.Mortgage Brokers are heavily regulated by Federal and State authorities and have strict disclosure requirements to protect borrowers.
4. CHOICE - The Key Broker Value PropositionWhen a lender is NOT competitive, the broker knows it and will focus on lenders with the best pricing options for the borrowers specific situation. Lenders have no incentive to disclose any other lenders programs and in fact have every incentive to sell their own programs - even if there are better programs & rates available somewhere else. If a lender DECLINES a borrowers loan they must start over at another lender. The broker acts like a Realtor (who can show you OTHER companies listings) Brokers have CHOICES & the clients best interest in mind.