Why a Mortgage Broker is Better to Use Than a Loan Officer
Recently the Federal Reserve announced it fined Wells Fargo Bank for allegedly falsifying loan applications and forcing borrowers into expensive mortgages. The Fed stated these borrowers were ones with good credit. These potential borrowers could have qualified for prime rates but were instead steered into expensive subprime loans.
These loans were made between 2004 and 2008 and are estimated to involve up to 10,000 borrowers.
This is just one of the main reasons using a mortgage broker like us. We are a licensed and act as independent agents between the borrower and the lender. As mortgage brokers we will determine your financial situation and then determine which lender is the best fit for your unique situation, and we will even submit your mortgage application to additional lenders in order to sell it. Because we, as mortgage brokers, receive payment only after the close of your home mortgage loan, we will work diligently to provide you with a loan that fits your circumstances.
On the other hand, a loan officer is a representative who works directly for the lending institution, just like what we shared above, which means the loan officer sells and processes mortgage loans originated by their employer. They have a variety of loans, but they are from that specific lender. A loan officer is not required to have a license to work in the mortgage industry and often has the best the interest of their employer in mind. Loan officers can be paid a commission or salary for their services.
So, before you go directly to a bank, keep in mind who would be working for you and the lender, not just the lender. We have your best interest in mind.
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