What is a mortgage broker?

This should be a simple answer, but its not.

A mortgage broker, as defined by the trade, is an agent who acts as a third party between consumers and lenders.

A broker can be a single individual, operating out of his own home. Or they could be a larger organization, such as a ‘net branch’ company which is a single corporate entity with many loan officers.

Here is the best definition of a broker.

They don’t have any money. They find funding from the many wholesale lenders for clients.

One defining characteristic is where the money comes from. If the broker has money, typically a line of credit called a warehouse line, then they are considered a lender and likely a correspondent lender who might sometimes also broker loans entirely.

This entry was posted on August 29, 2006 at 1:51 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.