I realize that Mortgage Brokers get a bad name and that some of it has been earned. But the majority of Mortgage Brokers aren't actively trying to get you into a home loan that is going to bankrupt you. Shopping for a mortgage broker, as we've discussed before on this blog, is an important step to getting you into a great loan. Work with someone you trust, not just someone that gets you the best rate. Make sure you do your homework and ask lots of questions.
Here is the text of the press release issued by the KAMB:
Kansas Association of Mortgage Broker Responds to Negative News
Overland Park, Kan. – News reports have recently been dominated by the problems in the mortgage loan sub-prime market. The mortgage broker industry has come under intense scrutiny as a result.
To address the recent changes in the mortgage market, the Kansas Association of Mortgage Brokers (KAMB) would like to remind consumers that the recent downturn in the industry is the result of the combined efforts of every sector of the industry.
Myth: Mortgage Brokers set the sales price of a home.
Fact: Mortgage Brokers do not set the sale price of a home. The Seller and Buyer typically in conjunction with a Real Estate Agent set the sales price of a home.
Myth: The Mortgage Broker is responsible for setting the fair market value on an appraisal.
Fact: Mortgage Brokers use licensed professional Appraisers to arrive at a fair market value. Generally, the Appraiser is a neutral third party.
Myth: Mortgage brokers create the loan programs available on the market.
Fact: Mortgage Brokers do not and have not been the ones designing and establishing loan programs. The large array of loan programs in the market today were designed by banks typically in conjunction Freddie Mac (Federal Home Loan Mortgage Corporation) or Fannie Mae (Federal National Mortgage Association).
Myth: Mortgage Brokers underwrite their own loans.
Fact: While some mortgage brokers do underwrite their own loans, the majority do not. Underwriters at the end lender ensure the borrower meets all of the loan guidelines.
Myth: Mortgage Brokers created the demand for Mortgage Backed Securities (MBS).
Fact: Investors on Wall Street created the demand for MBS.
Myth: All loan originators are equal in the eyes of regulators.
Fact: Only mortgage brokers are required to meet state and federal law. All states now require at a minimum registration of loan officers employed by a mortgage broker. Most have minimum continuing education for loan officers employed by a mortgage broker.
Mortgage Brokers help borrowers find the loan that best fits their individual needs and then guide them through what can be a complicated process.
Overland Park, Kan. – News reports have recently been dominated by the problems in the mortgage loan sub-prime market. The mortgage broker industry has come under intense scrutiny as a result.
To address the recent changes in the mortgage market, the Kansas Association of Mortgage Brokers (KAMB) would like to remind consumers that the recent downturn in the industry is the result of the combined efforts of every sector of the industry.
Myth: Mortgage Brokers set the sales price of a home.
Fact: Mortgage Brokers do not set the sale price of a home. The Seller and Buyer typically in conjunction with a Real Estate Agent set the sales price of a home.
Myth: The Mortgage Broker is responsible for setting the fair market value on an appraisal.
Fact: Mortgage Brokers use licensed professional Appraisers to arrive at a fair market value. Generally, the Appraiser is a neutral third party.
Myth: Mortgage brokers create the loan programs available on the market.
Fact: Mortgage Brokers do not and have not been the ones designing and establishing loan programs. The large array of loan programs in the market today were designed by banks typically in conjunction Freddie Mac (Federal Home Loan Mortgage Corporation) or Fannie Mae (Federal National Mortgage Association).
Myth: Mortgage Brokers underwrite their own loans.
Fact: While some mortgage brokers do underwrite their own loans, the majority do not. Underwriters at the end lender ensure the borrower meets all of the loan guidelines.
Myth: Mortgage Brokers created the demand for Mortgage Backed Securities (MBS).
Fact: Investors on Wall Street created the demand for MBS.
Myth: All loan originators are equal in the eyes of regulators.
Fact: Only mortgage brokers are required to meet state and federal law. All states now require at a minimum registration of loan officers employed by a mortgage broker. Most have minimum continuing education for loan officers employed by a mortgage broker.
Mortgage Brokers help borrowers find the loan that best fits their individual needs and then guide them through what can be a complicated process.
More than 60% of all mortgages in the United States are originated by Mortgage Brokers. The American public has made it clear that mortgage brokers are their loan source of choice.
Mortgage Brokers are in a unique position to help the average borrower. Rather than being constrained to the loan products that one bank has to offer, the mortgage brokers has access to many lenders, providing a borrower with many more options.
Unlike loan officers in a bank, Kansas loan officers working for a mortgage broker are required to be licensed and to annually complete continuing education.
Mortgage Brokers are usually small business people that work and originate loans in the same communities in which they live. They have a strong sense of community pride and a vested interest in the health and welfare of our community.
Just as there are bad actors in any profession, KAMB recognizes that there are bad actors in the mortgage industry, and works very diligently with State and Federal Regulators including the State Bank Commissioner’s Office. We have worked, and will continue to work, to weed out the bad actors in our profession. Members of the Kansas Association of Mortgage Brokers subscribe to a Code of Ethics and Best Business Practices.
KAMB recommends that consumers looking to purchase, refinance or consolidate debt ask if their loan officer is a member of the Kansas Association of Mortgage Brokers. By doing so, they ensure they are working with someone who meets higher education and ethical standards.
Kansas City Mortgage Group
www.kansascitymortgagegroup.com
