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Mortgage Loan Brokerage


Party or company that acts as an intermediary to originate loans on behalf of borrowers and lenders.


A mortgage loan brokerage is a business or financial entity that assists prospective borrowers find and retain loans from various sources. The source of funds for a mortgage brokerage are typically not their own. Brokerages typically find sources of funds from different lenders, banks, investors, and others. In rare situations, mortgage brokerages fund loans with their own capital.

A mortgage brokerage acts as an intermediary or middleman for the borrower and the source of funds the borrower will use to retain the loan.

Role of Mortgage Broker

A mortgage broker is the party that represents a brokerage in the process of approving a borrower for a loan. Mortgage brokers are responsible for collecting paperwork, packaging the loan file, and submitting it to lenders. The role of brokers varies based on the difficulty of the individual borrower they are trying to get approved for a loan, however the main role of a mortgage broker is to package a loan file in a manner that best equips a borrower to be approved for a loan.

A real estate broker can also solicit and sell loan products. A broker who solicits and sells loan products works for or owns a mortgage loan brokerage. Mortgage loan brokerages have the legal protection to do the following:

Solicit Borrowers for Loan Products

Sell Loan Products

Negotiate Loans with Lenders

Service loans (Collect payment, manage property); provide service for lender or investor

New laws require mortgage originators from a loan brokerage to register with the state as a loan originator.

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