mortgage broker Definition | Business Dictionaries from AllBusiness.com
Facebook Twitter You Tube RSS Feed

Business Glossary

SEARCH THE BUSINESS GLOSSARY

Search Business Glossary:

Business Definition for: mortgage broker
Dictionary of Finance and Investment Terms
mortgage broker

one who places mortgage loans with lenders for a fee, but does not originate or service loans.

Dictionary of Banking Terms
mortgage broker

person who brings borrower and lender together, earning a commission. A mortgage broker may also place loans with investors, but he does not collect the mortgage payments.

Dictionary of Business Terms
mortgage broker

one who, for a fee, places loans with investors, but does not service such loans.

See also mortgage banker
Dictionary of Real Estate Terms
mortgage broker

one who, for a fee, places loans with investors, but does not service such loans.

Example: The Ace Development Company wants to build a shopping center. A mortgage broker charges a 1% fee for each construction loan (placed with a commercial bank) and the permanent loan (placed with an insurance company).

Related Terms:
mortgage banker

company, or individual, that originates mortgage loans, sells them to other investors, services the monthly payments, keeps related records, and acts as escrow agent to disperse funds for taxes and insurance. A mortgage banker's income derives from origination and servicing fees, profits on the resale of loans, and the spread between mortgage yields and the interest paid on borrowings while a particular mortgage is held before resale. To protect against negative spreads or mortgages that can't be resold, such companies seek commitments from institutional lenders or buy them from the Federal National Mortgage Association or the government national mortgage association. Mortgage bankers thus play an important role in the flow of mortgage funds even though they are not significant mortgage holders.

Referring Terms:
mortgage correspondent
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Back to Business Glossaries Home

AllBusiness Greatest Hits