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Saves them time and money. The mortgage broker does all the legwork of finding customers, pre-qualifying them and putting together their loan package. As a result lenders are able to offer discounted pricing to mortgage brokers. Alternative to branch offices. Since personal contact with the customer is usually required, a mortgage broker serves as a lenders branch office. This saves the lender tremendous amounts of time and money. Through a network of mortgage brokers, lenders can service a wide number of customers. Provide a matching service. Mortgage brokers know what each lender is looking for and submit loans that a particular lender is likely to approve. This saves the lender a lot of time and expense since they approve a higher percentage of loans. Mortgage brokers generate about 50% of all loans. Lenders have established wholesale divisions and have hired account representatives just to service their mortgage brokers. There is a lot of competition among wholesale lenders to get broker- generated business. Save sales and marketing expense. Mortgage brokers are responsible for all the sales and marketing required to find clients. Lenders in effect have a large sales force with little overhead cost. Back to Frequently Asked Questions
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