Posted by River City on November 01, 2004 at 07:26:12:
Some lenders also hold brokers licenses. Lenders close loans in their name and normally use their own funds for the closing while brokers do just the opposite. There are some states that require lenders that act as brokers to obtain both types of licenses. A lender’s license requires more net worth than a broker’s license. Generally lenders have higher overhead because they work from an “office.” “Most” brokers work out of their homes in one-man shops.
A lender could technically set up a brokerage company in one state to sell to their parent lender in another state. This would have to be disclosed to the borrower, if this arrangement was made. The disclosure used would be called an “Affiliated Business Arrangement Disclosure.” It is required by the Real Estate Settlement Procedures Act (RESPA) and would be given to the applicant at time of the referral.
mortgage license vs. mortgage broker certificate - Posted by Baker10
Posted by Baker10 on October 27, 2004 at 20:52:01:
I am wondering what the difference is between having a mortgage license and a mortgage broker certificate. Why would a mortgage company be licensed on some states and have a certificate for others? Thanks!
license vs mortgage broker certificate - Posted by Baker10
Posted by Baker10 on October 29, 2004 at 19:53:42:
Thanks! I am asking because I refinanced with a company who said that they were a lender, not a broker. I found out that they have a mortgage broker certificate in my state, ohio, but no type of license. So I am wondering how they can claim to be a lender and not a broker. Thanks!