Hello Folks,

This blog is directed to both Consumers & Real Estate professionals. I recently seen some blogs and some articles in print about what type of Mortgage Professional the borrower should use, so I thought I would provide my 2 cents worth. Basically there are three types of Mortgage Professionals ..... Loan Officer, Bankers, and Licensed Mortgage Brokers.....

Bankers .... Bankers are typically a true bank that also provides mortgage financing. They typically have good programs but are limited to ONLY the programs which their specific bank offers. They are then forced to put a borrower into a program that may not be best for them were as a Mortgage Broker has Numerous programs to find the "right and correct" FIT to match the borrowers needs. Some examples of bankers is "Bank of America", Washington Mutual, and many smaller regional banks. The mortgage people at most of these institutions are Not Individually Licensed(depending on the state laws were they are located) but have gone through a thorough back ground check to protect their employer and their customers. Many times these "bankers" will say you are safer getting your loan from them because they aren't going anywhere and they lend their own money......That may be true, but that is not necessarily "safer". These Banks can just as easily cancel a program at any time just like any other lender. Also these "Bankers" do not have to disclose their "Back End" fees on the HUD1 which everyone else is required to do..... So, you truly have no way of knowing what the Mortgage Professional is making on the deal.

Loan Officers... These are people who are NOT Individually Licensed and are not required to be(depends on their individual state laws). Many times their employers don't even do a background check on these people for previous problems like Felonies, Fraud Convictions, or other unsavory problems. Now the reality is that a extremely large majority of these "Loan Officers" are very professional in their business and do the legally and morally right decisions when it comes to dealing with clients and their personal information. Loan officers usually work for a Mortgage Brokerage and have at there disposal numerous lenders to send their loans to.

Licensed Mortgage Brokers......These people have their Individual Mortgage Broker's License, are required to take an initial 24 hours class, successfully pass a State exam, pass a criminal investigation, and have had to provide a copy of their finger prints which are kept in their file at the States Department of Finance. If they have any disciplinary issues, those are kept on file and these people can be subject to losing their license for not staying compliant. These individuals are usually set up with numerous lenders / banks for shopping the borrowers loan to INCLUDING the same banks as referenced above in the "Bankers" description...."Bank of American, Washington Mutual, Wachovia, Bank United, Fifth Third, Etc..... Just because these professionals are "Brokers" doesn't mean that is their RATES from the bank will be higher, actually they can be quite lower because they are getting "wholesale" rates". PLUS.... we have to disclose every penny of every fee we are charging to the borrower....Both front end and back end.

I have had the pleasure of working in all three categories over the past few years. I was amazed in the beginning when I found out that NO formal background check is required on Loan Officers. Here you have someone who will be dealing with the most sensitive information that a borrower has (Social Security Number, Bank account Numbers, Credit Card accounts, Dates of Birth Ect ....... EVERYTHING an "Identity Theft person trys to get on their suspect. I truly believe that in the near future everyone will be required to be Individually Licensed, At least I hope so. Would you want someone recently paroled from Prison working on your financing ???? I wouldn't.... and the shame is you would NEVER know until the damage is done. Heck, people who cut hair for a living have to be licensed and they have nothing to do with your finances and your #1 assets.

Now let me repeat .... A very large majority of Loan Officer are Professional in the work ethics and are very reputable people, my concern is the vulnerability that borrowers have..... and most of the public doesn't even know this.

 I'm curious to see the responses.

Sean Allen
The Mortgage Professionals
Professional Credit Consulting & Repair
www.TheMortgageProfessionals.biz