Many banks and  mortgage companies originate their loan portfolios strictly through mortgage brokers.  A broker is more likely to have the right program for you than any other type of lender, making mortgage brokers very competitive with mortgage bankers and other savings institutions.

The brokerage industry plays a significant role in the mortgage lending process and American economy by increasing competition and driving down costs.  The expansive mortgage broker network allows loan wholesalers of all sizes to immediately gain a national presence without incurring the great expense of national advertising and maintenance of branch offices. 
The mortgage brokerage industry is regulated by 10 federal laws, 5 federal enforcement agencies, and over 45 state laws or licensing boards.  Additionally, brokers typically have some type of Quality Control (QC) requirements and NAMB members also adhere to a strict Code of Ethics.

Do brokers work for the lender they are selling my loan to or me, the consumer?
Neither.  As an independent contractor, the broker allows wholesaler lenders to cut origination costs by providing such services as preparing the borrower's loan package, loan application, funding process, and counseling the borrower.  Brokers help keep loan rates low due to their minimal overhead and setup costs. Furthermore, the broker will seek the loan which best suits the borrower's financial circumstances, needs, and goals.  From the consumer perspective, with rare exception, the broker does not get paid unless and until the loan closes.   Thus, the broker has the ultimate incentive to provide the best possible customer service to the consumer.

Since mortgage brokers arrange real estate secured loans, any current or prospective real estate owner can utilize their services.  A mortgage broker can often save a great deal of time and effort by shopping the lending market for the loan program which is right for the borrower.  When using a mortgage broker, a borrower makes just one loan application rather than applying more than once at various other lending institutions.  A loan request made through a mortgage broker is then fully processed in the shortest amount of time possible.

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