New initiative looks to turn brokers into lenders

by Adam Smith03 Dec 2013
A new initiative has vowed to ease the transition of "emerging bankers" as many brokers look to transform their businesses.

First Guaranty Mortgage Corp has announced an educational initiative to aid originators looking to transform their businesses from brokerages to mortgage lending companies. The company said it will partner with Navigator Lending Solutions (NavPros) to provide education and training resources - including webinars, on-site seminars, white papers and other educational materials, to brokers looking to transition into mortgage lending.

“The number of mortgage brokers and originators who now want to serve their clients as mortgage lenders is rapidly increasing,” said Andrew Peters, CEO of FGMC.  “Through our partnership with NavPros, we look forward to offering guidance and information that might not otherwise be easily accessible to emerging bankers as they make what can be a challenging transition.”

The company claimed the materials would guide brokers through a conversion to mortgage lenders by including information on licensing procedures, regulatory and statutory requirements and prohibitions at the state and federal level and investor requirements.

NavPros president Jan Manning touted the benefits of transitioning from the traditional broker role into mortgage lending, but said the move required preparation.

"There are a number of benefits to be gained from becoming an emerging banker, and yet, there are many potential pitfalls for brokers unprepared for the transition. Many brokers do not have the back office or compliance resources necessary to manage the process successfully.  With this partnership, we look forward to supporting these emerging bankers, whom we believe will be essential to the mortgage lending industry in the rising purchase market."

COMMENTS

  • by 2Bsquare | 12/3/2013 9:06:36 AM

    Kind of puts a crimp in the CFPBs plan to offer full disclose to the consumer if every broker becomes a lender.

  • by John | 12/3/2013 9:21:48 AM

    does not help in funding FHA mortgages - correct?

  • by Griff | 12/3/2013 9:37:43 AM

    2Bsquare If CFPB wanted full disclosure they would set up the disclosure docs to be identical between broker and banking. Let me break it down for you, brokers would not have to count fees in the 3% that banks don't and would not show income on the disclosures that banks do not.

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