A mortgage broker is a licensed professional who acts as a middle man sport ween the borrower's and the lenders. Over 80% of home loans issued today are done so by a mortgage broker. The banks have used mortgage brokers to effectively outsource the hassles of working with borrowers, and also to outsource some of the liabilities for fraud and foreclosure onto the originators through legal agreements. As such, mortgage brokers have been stigmatized, and most are considered unethical, unprofessional, and at times, even fun inals.
Frequent news reports about Mortgage Brokers who are being sent to state and federal prisons are certainly not helping the everyday mortgage broker to be recognized as a legitimate real estate source. Of course not all mortgage brokers are fun inals and bad s, but the image has been twisted to make it appear so.
During the process of loan origination, the Broker gathers and processes paperwork associated with mortgaging real estate. A loan officer acts as the conduit sport ween buyer and lender. Most states require the mortgage broker to be licensed, there are states that do not though.