Why do lenders use mortgage brokers?
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 lender’s 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 account representatives on staff just to service their mortgage brokers. There is a lot of competition amongst wholesale lenders
