From: "CalNeva" 
Newsgroups: alt.building.finance alt.building.realestate alt.invest.real-estate alt.realtor.relocation misc.invest.real-estate realtynet.invest
Subject: Re: Is a Mortgage Broker the same as a Loan Officer?
Date: Mon, 02 Jan 2006 02:46:05 GMT


"Don"  wrote in message 
news:Zy%tf.28159$m05.4787@clgrps12...
> "CalNeva"  wrote in message 
> news:0qXtf.40694$7h7.726@newssvr21.news.prodigy.com...
>
>> They not only screen but they also negotiate loans  with clients and do 
>> all what a broker can do except they can only work for licensed brokers.
>
> That is interesting. I am having trouble understanding the difference 
> between what a "loan officer" working for a licensed broker does and what 
> the licensed broker does. When you say the loan officer negotiates loans


The licensed broker owns the business and has supervision responsibilities 
and
can either manage a group of loan officers or manage and work as a loan 
officer.
Typically, a mortgage broker makes (negotiate) arrangements with lenders 
(more than one)
to sell their loan products which means they have access to many lenders 
products.
The shopping around comes when a laon application is received.  The broker 
loads
it into a computer system knowns as a loan origination system and then 
he/she uploads
the data to the various lenders where there are suitable products available 
etc.
After receiving the loan scenarios (possibilities) from the lenders, they 
are presented to the borrower
(negotitaed) and a deal is agreed (a scenario from a certain lender is 
selected).  The broker contacts
the lender and gets the loan approved by the lender. The loan is funded at 
close of escrow by the lending institution.
The broker in this case is not a lender. It is considered a wholesaler. The 
broker can become
a lender if they negotiate a correspondent lender agreement with a large 
lender or insurance companies etc.

http://www.AmericanWest.biz

> with clients, do you mean that the brokerage already has available some 
> selection of loans to immediately offer the client? I always thought that 
> a mortgage broker's job was to "shop around" on behalf of the client to 
> find the best loan that meets the client's needs and that the broker 
> negotiates with a lending institution, not with the client. Maybe I am 
> wrong, but from what you say, I get the impression that the brokerage 
> itself is functioning like a lending institution.
>