As a comment to this blog post defining mortgage broker says, “no more than glorified loan processors.”
A mortgage broker finds a mortgage, like a real estate broker finds you a house.
The use of mortgage brokers exploded as the housing bubble built, and mortgage companies basically outsourced loan processing.
They relied on the mortgage brokers to bring them customers, and title agents to handle the closings, and all they did is serve as a wareouse of funds.
Many of my client who paid thousands of dollars in commissions to mortgage brokers did not even know they had a mortgage broker.
Deceptive names were used, with “mortgage” in the name, so that the borrower thought it was the broker’s money he was borrowing.
Abuses by mortgage brokers were a big factor in the causing the current crisis.
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