Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Who Else Wants to Know the Attributes of a Mortgage Broker?
1. Who Else Wants to Know the Attributes
of a Mortgage Broker?
2. Basically, a mortgage broker refers to the middleman or intermediary
person who brokers housing loan between a seller and a buyer. Banks
and other similar institutions used to sell their properties directly to the
buyer; due to the growing competition in the market, however, the
services of mortgage brokers become indispensable. This is true in
advanced countries such as Australia, Canada, Spain, New Zealand,
United Kingdom, and United States of America.
The role of mortgage and loan brokers have become popular in
Australia in the early part of 1980s; these brokers dominated the
mortgage industry in the later part of 1990s. A number of legislative
measures were then enacted, including responsible lending and
licensing regime. Up to this time, property brokers play a vital role in
the State's real estate business.
For a more detailed discussion regarding the role and characteristics of
a mortgage broker, read on below.
1. A CONDUIT BETWEEN PARTIES. A mortgage broker is
responsible in establishing connection between the buyer and the
seller, or between the lender and the buyer. Once the parties are
agreeable on the terms embodied in the mortgage agreement, the
broker ensures the consummation of such agreement.
2. LEARNED ABOUT BANKING ACTIVITIES. Often, mortgage brokers
are required to have good appreciation of a number of banking laws
and financing rules. In other jurisdictions, it is a plus factor for a broker
to know about retail banking, business banking, corporate banking,
land mortgage banking, private banking, and investment banking. The
reason for this is simple - banks and financial firms are profit-oriented,
hence, they prefer to deal with persons learned about banking terms.
3. AN ADVISER. In the United Kingdom, for instance, people handling
mortgage brokerage and home loan matters are necessarily working on
and dealing with regulated financial activities.
3. Thus, the mortgage broker is usually responsible in giving appropriate
information and advice to potential borrowers based on the latter's
capacity to pay and circumstance. In fact, brokers can be made liable if
later on the advice he gave is found inappropriate. In other places,
however, brokerage activities are limited to client hunting and sales
work.
4. PERFORMS TECHNICAL WORKS. The extent of services rendered
by mortgage and property brokers largely depend on their capacity
and attached liabilities. Mainly, they perform the following technical
works: assessment and verification of the borrowers' financial condition,
assessment of the properties available in the market, processing of the
lenders' application papers, selection of the documents required, and
conduct legal disclosures. Also, they make sure that their clients are
able to save money by giving out appropriate product and financial
advice.
The role of housing unit brokers and home loan specialists are seriously
regulated by the Australian Securities & Investments Commissions to
ensure compliance with the number of banking laws and finance
decrees. More importantly, such regulation policy is for the protection of
the welfare of the consuming public.