The Main Differences between Mortgage Brokers and Loan Officers
A mortgage broker works as a mediator between the buyer or the one who borrows the money and the lending institution. A loan officer, on the other hand, works only with the lending institution or any individual who is willing to loan the money.
Many states in Australia require licenses for brokers. The lending practice in the country is always regulated accordingly to provide more security for the borrowers. This being said the rules and regulations might vary depending on the state itself.
If one wants a career as the broker associate, or if he or she wants to establish an individual brokerage business in the future, you would need to apply for a license. In addition to this, various brokers are regularly registered within the state that they are working in. These individuals are personally liable if they commit fraud in terms of the loan life itself.
On the other hand, while brokers are more often than not, individual entities, loan officers’ work for licensed institutions such as banks or registered lending establishments.
Both of the particular individuals have both a legal and moral obligation and responsibility to prevent fraud. They should also be able to have full disclosure with a client regarding the terms of the loans before they proceed with the transaction.
Some people who work for mortgage brokers themselves can also be referred to as a loan officer.
The Importance and Advantages of Licensing
As professionals, brokers should have a working license procures through the National Mortgage Licensing System and Registry. By registering with this particular institution, they will be able to improve and particularly strengthen the supervision and regulation of the industry itself.
Having licenses will also foster better communications between the brokers and loan officers of different states. Loan officers can afford to be registered with the mortgage licensing system without necessarily being licensed by the establishment.