There are many differences between a mortgage broker and a loan officer. For starters, the mortgage broker does not require any type of licensing or special training to become a mortgage broker. This is because mortgage brokers do not deal directly with individuals in the lending industry Mortgages Lisburn. As such, there is no need for the lender to have a thorough understanding of the mortgage broker’s experience or his track record as far as lending is concerned.
Loan officers on the other hand have been trained and tested to be expert consultants in the loan market. Although the lender needs to know that the mortgage broker has relevant experience, the loan officer needs to also convince the lender that he/she is an effective consultant in the loan market. Loan officers are able to do this by providing solid evidence on previous clients and their success with the loans they provided. As such, if the loan officer has impressive evidence to back up their claims, the lender is more likely to take their advice.
Although a mortgage broker is able to provide valuable advice to the lender about which mortgage product is right for a particular borrower, a loan officer can sometimes put the buyer at a disadvantage by suggesting a mortgage product that may not be the best option. As such, loan officers are able to play the part of a salesman and convince the buyer that they should choose the mortgage product or loan that the broker has recommended. However, the lender is well aware that mortgage brokers often have a strong interest in one mortgage product or another and are not actually impartial when it comes to that product.
Therefore, while the loan officer may be able to get the loan approved, the mortgage broker may end up influencing the decision-maker to go with one lender over another. Because of this potential conflict of interest, it is important that the lender and the broker clearly share a commitment to providing honest and reliable information to each new client that is involved with the mortgage industry.