Differences between a Banker, Mortgage Broker or Mortgage Banker?? Posted on November 2, 2011 03:23 PM by Doug Yates When I was a youngster and knew everything imaginable about mankind, I became bewildered when my friend introduced me to a “Mortgage Broker.” I was intrigued with his title and confused at the same time when he explained that he was a loan officer and helped people secure a home loan for them in order to purchase a home. I had thought that if one wanted a loan for a home, you get it from the bank. Well, it was then that I had my eyes opened to a whole new world of employment opportunity and consumer selection. What is a Mortgage Banker? Mortgage Broker? Banker? Loan officers that work for a bank (i.e., Bank of America, Wells Fargo, Citi or Chase) typically have access to only the banks loan programs. They are restricted to what that bank offers and will not offer any other financing that does not fit into their “box” of loan programs. They control every step of the process from origination of the loan to processing, to underwriting for final loan approval, to funding the loan for final closing. A Mortgage Broker is a loan officer that works for a company that has very little control over the complete process of obtaining a loan. He is a middle man, someone who finds an invester/ bank to approve the loan, then fund the loan with another banks money. Brokers have the ability to shop several different banks and lenders for different loan programs and possibly more lenient guidelines in underwriting, but have no control over underwriting or funding of the loan. A Mortgage Banker tends to have the best of both worlds. He typically has lines of credit from the top banks which allow him to keep control over underwriting and funding of the loan. With access to the top banks, it opens up all the banks loan programs from each bank, thus offering the consumer many more loan programs to choose from. Not only does a mortgage banker control his clients file from inception all the way through to closing, he also has the ability to broker the loan to another bank for approval if needed. Therefore, he has access to all programs from bankers to brokers. The last eighteen years I experienced working as all three in one capacity or another thoughout my career. I can honestly state that the control and flexibility of a Mortgage Banker is by far the most efficient and effective when choosing a loan officer. I’ve always said, when purchasing the largest investment of your life, your home, you may as well choose the Mortgage Banker so you can “have your cake and eat it too!” 0 comments | Post a Comment Post URL: http://exitlvrc.com/Web/AR419786/Blog/post/?post_id=13734 Tags: Banker, mortgage broker, mortgage banker

Differences between a Banker, Mortgage Broker or Mortgage Banker??

Posted on November 2, 2011 03:23 PM by Doug Yates

When I was a youngster and knew everything imaginable about mankind,  I became bewildered when my friend introduced me to a “Mortgage Broker.”   I was intrigued with his title and confused at the same time when he explained that he was a loan officer and helped people secure a home loan for them in order to purchase a home.  I had thought that if one wanted a loan for a home,  you get it from the bank.  Well, it was then that I had my eyes opened to a whole new world of employment opportunity and consumer selection.

What is a Mortgage Banker?  Mortgage Broker?  Banker?  Loan officers that work for a bank (i.e., Bank of America, Wells Fargo, Citi or Chase) typically have access to only the banks loan programs.  They are restricted to what that bank offers and will not offer any other financing that does not fit into their “box” of loan programs.  They control every step of the process from origination of the loan to processing, to underwriting for final loan approval, to funding the loan for final closing.

A Mortgage Broker is a loan officer that works for a company that has very little control over the complete process of obtaining a loan.  He is a middle man,  someone who finds an invester/ bank to approve the loan, then fund the loan with another banks money.  Brokers have the ability to shop several different banks and lenders for different loan programs and possibly more lenient guidelines in underwriting,  but have no control over underwriting or funding of the loan.

A Mortgage Banker tends to have the best of both worlds.  He typically has lines of credit from the top banks which allow him to keep control over underwriting and funding of the loan.  With access to the top banks,  it opens up all the banks loan programs from each bank, thus offering the consumer many more loan programs to choose from.  Not only does a mortgage banker control his clients file from inception all the way through to closing,  he also has the ability to broker the loan to another bank for approval if needed.  Therefore,  he has access to all programs from bankers to brokers.

The last eighteen years I experienced working as all three in one capacity or another thoughout my career.  I can honestly state that the control and flexibility of a Mortgage Banker is by far the most efficient and effective when choosing a loan officer.  I’ve always said, when purchasing the largest investment of your life… your home, you may as well choose the Mortgage Banker so you can “have your cake and eat it too!”

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