What is the Role of a Mortgage Broker?

Posted by admin on Jul 1, 2020 5:05 AM

The internet has caused a lot of change within many industries and has empowered consumers to cut out the middleman and tackle tasks themselves. When it comes to choosing a new mortgage, there can be a lot of temptation to do it yourself: spend a few hours on the internet and pick what appears to be the best deal. However, not everything is as straightforward as it might initially seem, especially with a complicated process like that for taking out a mortgage or doing a refinance. Taking a DIY approach to buying a home could prove to be a costly mistake in terms of both time and money.

Using a mortgage broker avoids this. When anyone is making potentially the most important financial decision of their life, it makes sense to utilize the experience of someone who operates in the mortgage world on a full-time basis. We have listed below some of the main reasons why we believe using a mortgage broker is the most sensible decision anyone can make. If you are contemplating purchasing a new property or taking out a new mortgage, please give us a call to discuss all of the options currently available. We are confident we can find you the best deal.

Mortgage Brokers Work With Many Different Lenders

Every year, when the renewal quote for the car insurance arrives, many people visit one of the insurance quote websites and get themselves a better deal. This is because the sites work with many insurance companies (some you haven’t even heard of), and can compare prices and obtain quotes in a matter of seconds. If you tried to do this by hand it would take days, maybe even months. The same principle applies to the mortgage industry. A broker will have access to hundreds or even thousands of different deals, which could save you a lot of money over the course of your mortgage.

Mortgage Brokers Represent Your Needs

As a mortgage broker, our priority is always serving our customers needs as best as possible. Everyone has different needs. For some people that may involve paying off the mortgage as quickly as possible; for others, it might mean getting the lowest monthly payment possible. When we conduct our research, our focus is on identifying the best mortgage for our client’s situation. We always have the client’s best interest at heart.

Mortgage Brokers Ensure Lenders Receive Everything They Need

The process of applying for and getting accepted for a mortgage can be a long and intricate process. There are many pieces of documentation required, and it is easy for one or two vital pieces of information to slip through the cracks, which can then result in critical delays. A good mortgage broker will always be on top of this situation and ensure that lenders have everything they need to complete the mortgage smoothly and efficiently. It is hard to place a value on this, but many of our clients tell us that this is perhaps the most significant benefit to using a mortgage broker.

Mortgage Brokers Are Not Real Estate Agents, Loan Officers, or Lenders

Mortgage brokers are solely focused on helping their clients get the best mortgage possible, with the least amount of hassle and stress. They are single-minded in this approach and are not trying to separate their focus on housing market fluctuations, loan, or mortgage targets. In essence, a mortgage broker is a key player on your team and is there solely to help and assist you every step of the way.

We discuss the role of a mortgage broker

What Does it Take to Be a Mortgage Broker?

Think of a mortgage broker as a local insider when you go on vacation. It is entirely possible that you could DIY your vacation plan and perhaps visit the main tourist attractions that everyone knows about, but you would likely not get the best experience, and may well miss some of the best opportunities. Avoid that happening when you buy a home. We will walk you through the mortgage process, identify a range of deals that may suit your circumstances, and then help you to decide on the best option for your needs. Employing the services of a mortgage broker could be the best decision you ever make when it comes to your financial future. If that’s where you’re at in life right now, give us a call or send us a message. We look forward to sitting down with you.

As you can readily see by checking out my Instagram account, being a mortgage broker allows me to do something I really love: help people get into a great house from a secure financial situation. It’s amazing to be a part of their journey as a guide through the confusing world of credit, loans, downpayments, and mortgage companies.

If you are looking for a change of career, have a head for numbers and systems, and love helping people in the same way I do, being a mortgage broker may be right for you. But what is required to become a broker?

Primarily, you need to get licensed in your state to be a loan originator.

Each state has slightly different rules and requirements for licensure. I’ll help walk you through some of the steps for the state of Oregon. For fully up-to-date and detailed information, check out this page from the Oregon Department of Financial Regulation.

Complete Education

Any mortgage broker must complete at least 20 hours of education prior to receiving their license, including four hours of state-specific education. Courses are delivered through the Nationwide Multi-State Licensing System (NMLS) and include topics such as

Federal laws and regulations
Ethics
Lending standards for nontraditional mortgages
State-specific content

This education is web-based and can be fit into a busy schedule so you can pursue licensure without quitting your day job.

Pass the Test

The SAFE Mortgage Licensing Act of 2008 requires that all mortgage loan originators seeking licensure pass a test demonstrating their knowledge of applicable laws and processes for mortgage loans.

This test is conducted through the NMLS and must be scheduled in advance. It covers topics from the pre-licensure training courses, including the Oregon-specific content. It contains about 115 items and takes about 200 minutes to finish. Check out this document for more information.

Be Sponsored by a Mortgage Company

Oregon requires that any active loan originator license holder be sponsored by their employer in the mortgage industry. They are required to submit the request for sponsorship, otherwise your license will be inactive and you cannot legally conduct business as a mortgage broker.

One thing that usually comes with sponsorship/employment by a mortgage company is a surety bond. The purpose of this bond is to protect consumers in the event that a broker mismanages their work or does something illegal. Hopefully you’re not planning on going that route, but it’s still required for all.

Complete the Application

A complete application for licensure must be submitted through NMLS. A background check will be required as part of that application. And of course, there’s an application fee. But assuming that everything’s in order, after the application is processed you are licensed and can work in the state of Oregon as a mortgage broker!

Continuing Education

Keep in mind that in order to keep up with changing regulations, continuing education is required to maintain your licensure. If your license lapses, you may need to completely re-apply.

If you have any questions or would like to get a more personal perspective, let me know! Click here to get in touch.

About Rachel Moore: Oregon Loan Lady

A picture of Rachel Moore - Mortgage broker

We are a local, family-owned and operated mortgage brokerage serving Oregon for over 21 years. We believe that doing what’s right for our community is what has kept us in business for so long.

We provide unparalleled customer service, and go above and beyond to ensure that our customers get the best possible loans. We offer many added value services including

After-hours credit approval letters
Mobile signings
Help with improving your credit
A trusted advisory role for all of our clients

If you are looking for someone to give you great local service and to help you through the process of buying or refinancing, talk with Rachel Moore.

Give us a call today!

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