Mortgage Bankers and Financial Institutions

A mortgage broker is a person who behaves as a liaison between individuals and persons of a loan company.  The role of the mortgage broker is becoming more important as the popularity of mortgage markets continues on the rise.  Some of the larger companies in the world that are mortgage brokerage companies are in the United States, Canada, United Kingdom, Australia, New Zealand and Spain.  A mortgage banker is in charge of keeping the harmony between bank and finance laws and the banking customers.

The duties of a mortgage banker included:

  • Retail Banking:  this includes direct productions between individuals and big business.
  • Business banking:  provides core services to marketing businesses
  • Corporate banking:  aimed at larger business bodies
  • Land mortgage banking: specializes in the servicing of land loans.
  • Private banking:  Provides wealth management services to families and individuals of high net worth
  • Investment banking:  has a relation to the high net markets.  

The banking industry is often a for-profit industry; however, some banks are owned by the government and are considered not-for-profit entities.  Central banks have quasi- dictatorial responsibilities and are also owned by the government. These banks are in charge of the interest rates and are considered a bank of “last resort” in the case of any banking crisis.

When a mortgage broker is looking at the qualifications of an applicant, they view the applicant’s credit file, as well as their income; this information is then matched to any lenders that may be interested in lending to the applicant.  The mortgage broker will then act as an advocate aiding the applicant in seeking the home loan in which meets their income and credit qualifications.

The mortgage broker is not a direct employee of the lending agency whom the applicant is referred to; however, the broker may work for a large company that is affiliated with the lending agency, which employs a large system of mortgage brokers.  The mortgage broker has several options in which to work from; he or she may work from a commercial or corporate office or they may choose to work from their home, which would make them a self- employed entity, working his or her own hours according to the needs of the customers.  

How would one become a mortgage broker?

If one were to become a mortgage broker, they would have to take a state approved licensing program followed by a state board examination.  A mortgage broker has to have a license by the state in which they currently live and work; they also must pay for all the licensing fees, as well as meet all the training and licensure requirements.  

The five steps required in becoming a mortgage broker in your state of residence requires:

  1. Gain enrolment in a program that is accredited
  2. Pass the exam required for your licenses.
  3. Next, you will have to apply for your license.
  4. Submit your application.
  5. Continue with any education required to continue knowledge about being a mortgage broker.

Becoming a mortgage broker is a very responsible position.  Having the ability to assist an individual or family with bettering their financial situation can be a very rewarding opportunity as well.