MBA - Treat Mortgage Bankers & Mortgage Brokers Differently

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.”