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Mortgage broker or mortgage professional: What's in a name?

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Mortgage Professional America | 13 Mar 2014, 06:45 AM Agree 0
Should you be distancing yourself from the term ‘mortgage broker’, or wearing your broker badge with pride against those that would unfairly make your profession the scapegoat for the financial crisis?
  • 2Bsquare | | 13 Mar 2014, 12:19 PM Agree 0
    The sad part is most people, within and outside the industry do not know who or what a mortgage broker "is". I have seen consumers call the MLO at a bank a mortgage broker. Is a MLO at a brokerage firm a Broker? You could go on all day. Heck, CFPB and AARMR will not even clarify the differences between licensed and registered
  • Steve Felt | | 13 Mar 2014, 12:34 PM Agree 0
    I've been a broker off and on since 1999 and now proudly state this title on my website and explain the difference between brokers and bankers. Which there's a huge difference considering bankers steer borrowers into their proprietary programs and brokers have the ability to do what's in the best interest of the borrower.
  • Broker Mark | | 13 Mar 2014, 12:46 PM Agree 0
    people don't care what you call yourself as long as they get a good deal & close on time
  • Broker Mark | | 13 Mar 2014, 12:48 PM Agree 0
    oh and by the way the article below this one reads "Trial underway for Fannie Mae employee accused of kickback scheme". hmmm
  • Griff | | 13 Mar 2014, 12:57 PM Agree 0
    I just saw a linkedin comment stating "a broker just takes an application and shows at closing for a check". This posted by someone calling himself a researcher and educator among other adjectives. Mostly I believe the term broker is simply misused by folks such as him. Sadly the public cannot decipfer the difference, causing lasting damage to the broker industry.
  • Bruce A | | 13 Mar 2014, 01:43 PM Agree 0
    Ask yourself one thing ... Who offered the "Products" that Mortgage Brokers used prior to the meltdown? Answer: Not the Brokers. When will the blame be placed where it belongs. Wall Street? Big Banks?, nope ... It was those powerful mortgage brokers that put our economy on its butt. We sold what was offered.
  • Elizabeth Coley | | 13 Mar 2014, 01:52 PM Agree 0
    I am a MORTGAGE BROKER and proudly display "licensed mortgage broker" on my business cards. I used to be very actively involved with the mortgage brokers association in SC. Those few of us who survived all the negativity should continue to stand up and say you are a Mortgage Broker. I refuse to join with the mortgage groups that do everything they can to stay away from the name of "broker". It's with great pleasure to explain to clients the difference between the bankers and brokers.
    OK I will get off my soap box.
    Broker owner of Gateway Home Mortgage,LLC, Greer, SC
  • Wm Matz | | 13 Mar 2014, 02:04 PM Agree 0
    The problem was and remains not the title "broker" but the fact we refuse to implement standards that would make brokers true financial advisors. All NMLS did was ensure brokers are competent technicians. I.e., NMLS addressed the "how" of mortgages but not the "why".

    To address the "why" brokers need more education and training in law, accounting, tax, insurance, and investments, not to become licensed in those areas, but so that they can recognize opportunities where real estate finance can provide solutions. Many places where real estate finance could provide valuable solutions go unrecognized due to the widespread lack of financial education and training.

    NAMB's CMC program is one approach, but it seems largely dormant. Only if there is a groundswell of support to upgrade the financial credentials of the broker sector will we turn the tide to the point that mortgage broker becomes a proudly-held title.

    The good news is that we have the built-in advantage of beating the Banks by 1/2 -1% on rate, as well as access to a much broader product array. So if brokers would take the initiative to upgrade their financial credentials to become equals with the other advisors, we would change the way mortgages are done in the US and make mortgage broker a title of prestige.
  • Nancy V | | 13 Mar 2014, 06:56 PM Agree 0
    I've been a proud member of FAMB which is now FAMP, P for Professionals since 1995 because we do now incorporate all State licensed and non licensed Mortgage Loan Officers. Mortgage Broker is the Company. I have no qualms over telling my clients the extent of knowledge we have about their mortgage product and the process in which it gets closed. I'm also a member of NAMB for many years as well. I will stay a "Broker" thanks.
  • Gary J. Heinecke | | 24 Mar 2014, 01:02 PM Agree 0
    Way to Gateway. How about when we lobbied and our lobbyist in South Carolina told us that she didn't want to rock the boat because she dealt with politicians through other means. I saw this coming own many years ago and a weak association and apathy caused this. This is why I am not a member either. I too am proud to be a broker and sick ad tired of the nonsense and lack of rules being applied to all. Should have been a class action for violations of Sherman Anti- Trust a long time ago. Lastly when is the CFPB going after Zillow for being paid for soliciting business and going after builders that only give incentives that use their mortgage company. A major violation. Where is the CFPB now????i
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