Tuesday, June 10, 2008

MBA - Treat Mortgage Bankers & Mortgage Brokers Differently

MBA Mortgage Brokers have long chided regulation disparities between brokers and bankers. But The Mortgage Bankers Association recently released a policy paper which once again distinguishes the role differences and emphasises the need for greater disclosure by brokers regarding fees and yield spreads due to their intermediate status in the loan process. In addition, the MBA feels that bankers are already subject to greater supervision and regulation than brokers.

According to the MBA report, “Because broker compensation is directly tied to a loan’s interest rate and brokers lack an ongoing financial stake in loan performance, brokers have a high incentive to get loans closed, maximize fees for origination, and move on to their next transaction.”


Andy Johnson said...

This is an impressive blog. Great job. I have linked your blog on the Notary.net blog. Take care and keep up the good work!

Alex Y. said...

Thank you very much Andy.