Category: mortgage

Mortgage Broker Licensing: A Necessity For Virtually Every Mortgage Broker

Mortgage brokers are individuals that act as associates for licensed mortgage brokerage companies or other lenders that happen to be qualified under a particular state s statutes. A mortgage broker licensing qualification helps mortgage brokers as it gives them authorization to solicit loans (mortgage) on behalf of borrowers and to also accept applications as well as to negotiate mortgage loans in the name of lenders.

State Test

To apply for mortgage broker licensing a mortgage broker must fulfill certain conditions including passing a state s test as well as submitting certain forms and being above the age of eighteen. There are a number of schools that provide mortgage broker licensing courses that aim mainly to impart complete knowledge regarding mortgage lending fundamentals in a simple and concise manner.

There are a number of subjects that must be studied and passed when taking a mortgage broker licensing course including subjects such as basic provisions related to mortgages, state as well as federal laws, mathematics, secondary mortgage markets as well as the entire loan cycle that begins when an application is filed and which culminates after proper servicing has been provided.

To apply for mortgage broker licensing requires planning ahead since it is not permissible to make or even broker mortgage loans without already having a license or being qualified for exemption from mortgage broker licensing requirements. An exemption from mortgage broker licensing means that you don t need to comply with the licensing requirements, though in effect it also means that you will be regulated in some other way.

Banks, and subsidiaries of banks as well as attorneys are generally the ones that get exemption from mortgage broker licensing and the same is the case with real estate brokers as well as sellers that deal in property business that involves back seller financing. Some states also provide exemption from mortgage broker licensing to lenders that are already approved with the US Department of Housing and Urban Development.

An independent mortgage broker is often employed to advice people and to help them obtain information regarding benefits as well as conditions related to mortgages which should then help these people understand what it takes to make a commitment for a long term (such as twenty-five years) that is time required to repay their mortgage loan.

In case you want to run a mortgage business you will need to then get mortgage broker licensing and the best course of action for you then would be to apply for the license at least three months prior to when you plan on starting your mortgage brokerage business to ensure that you get your license well before commencing your business.

An Independent Commercial Mortgage Broker Can Be Your Best Ally

Traditionally, people when they needed to avail of the services of a good commercial mortgage broker would generally turn and look to a big financial institution or even to a reputable commercial mortgage brokerage firm for help. The reason for this is that these sources are well known for the good quality of service provided, especially when compared to the type of service provided by lesser well-known and decidedly smaller sized firms.

Necessary Resources

A big financial institution or a reputable commercial mortgage brokerage firm will have the necessary resources in terms of manpower as well as facilities and this means that the staff working for such firms would be in a stronger position to provide more complete and effective service. Nevertheless, not everyone can afford or wants to use such resources to hire a good commercial mortgage broker.

People whose needs are small and who prefer more personalized as well as intimate service will seek out a commercial mortgage broker from other sources, most notably from smaller sized companies and will also want to deal with independent individuals.

Independent commercial mortgage brokers provide numerous options since they have access to the best options in regard to suitable mortgages; the reason being that they know that large sized banks and brokerage companies only deal with large amounts of mortgage loans. Therefore, an independent commercial mortgage broker will be able to help you, a small borrower, affect bigger savings by using their intimate knowledge about mortgage loans to point you in the right direction.

Another useful service provided by an independent commercial mortgage broker is that they can tailor their service to fit in with your exact requirements. Also, they will only earn their money after the deal has been closed and this means that you get to save money on your transaction while the commercial mortgage broker is motivated in finding the best deal for you and in the shortest possible time.

Mortgage broker licensing is necessary for a mortgage broker wishing to practice mortgage brokerage in a state and in order to obtain this license a prospective broker will need to obtain what is known as a mortgage broker bond from the state in which he is planning on plying his business.

For those people that need tailor-made as well as more personalized service, then their best bet would be to check with independent commercial mortgage brokers rather than waste their time and money in paying more to get the same service from a big financial institution. Because there are many small borrowers who either cannot afford or do not wish to deal with the bigger players, the independent commercial mortgage broker can prove to be an able ally and one that will readily shop for a low interest mortgage loan on their behalf and so in a simple way will prove to be a big help and at an affordable cost.