Welcome to American Financial.
We at American Financial believe mortgage brokers are a worthwhile option for borrowers. The new federal banking, regulations, QM test requirements and the SAFE Mortgage Licensing Act of 2008 have changed the lending industry protecting the borrowers and now mortgage brokers have to pass state licensing exams and renew it every year in order to prove they know the rules & regulations of consumer financing. Below are some of the reasons.
- Broker compensation rules require brokers to be paid on the volume of loan instead of the interest rate; this means brokers have no incentive of offering higher rate’s to their borrowers. Now the borrower decides on the rate.
- Broker works as a middleman with variety of lenders to place loans, especially beneficial to the borrowers who might not be shoo-ins for a loan.
- Brokers give more options since they are not tied to any one lender; they have the ability to shop around on behalf of their clients.
- Brokers understand the guidelines of the lender, and have the opportunity to look at borrower information before it is sent to the appropriate lender for the best suited loan for the borrower.
- Brokers handle the paperwork and interact with lenders and they may be able to head off challenges before they become problems.
- Brokers work with Mortgage lenders who offer wholesale interest rates most times lower than retail rate offered by the banks.
- Brokers work with lenders that offer loan programs not offered by traditional banks, giving borrowers more variety when dealing with complicated transactions.
- Brokers have to disclose their compensation to the borrower upfront, compared to banks that do not have to disclose anything.