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Definition: Mortgage Broker
Mortgage Broker is an intermediary between mortgage borrower and mortgage lender. Anyone be it individual or business entity who wants to take a mortgage loan from a mortgage lender is facilitated by mortgage broker.
Traditionally lenders were selling their own mortgage products. But as mortgage market has become more competitive the role of mortgage broker has become substantial. Now mortgage brokers sell most of the mortgage products for mortgage lenders. This is true for most of the developed mortgage markets like the US, Canada, the UK, Australia, New Zealand etc.
Mortgage brokers are mainly involved in marketing mortgage products, collecting required documents from the borrowers, assessing borrowers’ financial situation and history, finding mortgage products that are suitable for the clients, explaining all legal and financial requirements, submitting mortgage application forms and documents to lenders.
Mortgage Brokers are paid by mortgage lenders either as loan origination fee or compensation for their services.