With the changing times, laws, markets, etc., it is hard to figure out what to do if you are in the mortgage business. I am currently a mortgage broker. The government seems intent on blaming the mortgage crisis on brokers and then passing laws to run them out of business. So much for us honest folks.
Mortgage correspondent companies are like brokers except that they close the loan in their own name and then sell it. They do in house underwriting and then use a warehouse line to fund the loan and then sell it. They have to follow the same rules as a broker does these days. Show yield spread, etc.
A lender is like a bank but they do not take deposits. Therefore they are not a bank and not under the FDIC. The rules are a little more lenient on them.
Bank mortgage originators do not have to get licensed, do not have to pass any tests, do not have to show any yield spread to the borrower. They get paid with a service release premium when they sell the loan. However, they do have to work for the bank. Ask a WF loan officer how they like their job these days.
Figuring out where to "hang your shingle" these days is a hard choice. Any comments out there from other originators?
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