A mortgage broker is an organization that privately arranges mortgages for customers. Mortgage brokers are usually paid by the mortgage bank for their part-time work Mortgage Advisor Belfast. This agreement allows brokers to make certain commissions off of the interest earned on loans taken out by their customers from various financial institutions and banks.
Mortgage Broker Agreement
The mortgage broker agreement generally will detail the fees that will be paid by the lender as commission to the mortgage broker in question. This fee is referred to in the industry as origination fees. The origination fee is paid by the lender in order to pay off the mortgage broker in question, the mortgage banker. In essence, the origination fee is the “general overhead” that is paid by the mortgage banker and the mortgage broker in question. This amount of money adds up to billions of dollars annually in the United States, although this figure is subject to change based on the economy and various lending situations throughout the nation.
It is illegal for any mortgage broker to charge a fee until the loan documents have been completely reviewed and approved. It is also illegal for brokers to tell customers that they cannot get a certain type of loan or to charge them unreasonable fees up front. If a lender tries to charge you something like an origination fee before your loan documents have been processed, you should never sign them. You never know what lies ahead and signing those loan documents is often a gamble. You could end up with a defective product or worse yet, a predatory lending act or scam.