What incentives do mortgage brokers have to approve or deny loans?
Answer Mortgage brokers aren’t really in the position to deny loans, and they really have no incentive for that to happen. It is the underwriter who works for the lender who approves or denies a loan. It is the job of the mortgage broker to prepare the loan file in such as way that it has the most likelihood to be approved. Some mortgage brokers charge an application fee to buyers which is paid upfront, but most brokers, like ourselves, only get paid when the loan closes and funds. Therefore, it is almost always in our best interest to get our customers approved, assuming they qualify.
