People Involved With Mortgages
When you are about to make a mortgage loan, there are some people you might meet who are involved with making mortgages happen. These are the people who will be using industry related jargon that might be confusing. In fact, even their very job titles could cause some confusion. Here are three people who you might meet and also their jobs have been defined and classified for your convenience so that you know who is who and who does what in the mortgage business. By knowing this, you will know who to run to when you have some questions that you may want some answers to. Know these people and make your life that much easier
First person you should know is the mortgage banker. Now this guy doesn't have to be a person per say, but it can be a corporation, a single person or an institution that helps originate mortgages. These mortgage bankers, unlike mortgage managers, use their very own money but they also use funds that have been borrowed from certain warehouse lenders to help fund the mortgages. Once the mortgage has originated, the mortgage banker might keep that mortgage in a portfolio and at times, they will even sell that mortgage to another investor. The primary business of these mortgage bankers is to earn money through the fees which are associated with the loan origination. Though some mortgage bankers may keep a mortgage in portfolio, most would not do that.
The next guy that you would do well to b able to indentify is the mortgage broker who acts as the middleman who helps bring mortgagers and mortgagees together in one place. This guy however does not use his own money to provide funds that originate mortgages. The mortgage broker will gather all the necessary paperwork from the mortgager and the gives the papers to the mortgagee to get approval. The mortgage broker makes his money by collecting origination fees and the yield spread premium that comes from the mortgager as payment for services rendered. Do not underestimate the mortgage broker because he can be instrumental in getting you the loan that you need to invest in a new house, a new car or even a new business.