Mortgage Broker – An Intro

A mortgage broker is a person who brokers mortgage loans for people or companies. They do the marketing and selling of these loans to people who are looking for them. This can include banks, credit unions, other lenders, or anyone who offers mortgage loans. Mortgage brokers don’t actually loan the money, but they work with a lender to exchange the money for the loan. This is how the mortgage broker makes their money. Interested readers can find more information about them at official site

 that the mortgage broker makes their money is by getting a commission from the mortgage lender for the loan that they arranged for you. This commission is typically a percentage of the entire loan amount, but can be anywhere from two to ten percent. The mortgage lender pays them this commission in addition to their origination fee. The origination fee is what is usually called the “service charge” on any mortgage loan. It is this service charge that the mortgage lender charges you in addition to their regular commission for arranging your loan.

The origination fee includes the lender’s fee, listing commission, underwriting fee, application fee, valuation fee, discount rate, and miscellaneous fees. All of these fees must be paid at the same time in order to receive the full commission. If one or more of these fees are missed, the borrower may not be able to get the full amount of the commission that they were entitled to. In some cases the borrower can get away with paying just the minimum amount required by law, but if they do owe anything more the borrower may be subject to serious penalties. Mortgage brokers must be licensed by the FHA so that they can legally represent the borrowers.