National Mortgage News (05/26/08) Vol. 32, No. 34, P. 2; Sinnock, Bonnie; Finkelstein, Brad
In a new policy paper, the Mortgage Bankers Association (MBA) insists that the differences in the roles played by mortgage bankers and mortgage brokers means legal and regulatory distinctions should be made. The paper notes that "brokers often position themselves as 'trusted advisors' who will shop among mortgage bankers and arrange for the best loan," while mortgage bankers are viewed as a "knowledgeable source of information about their own loan products and the mortgage process." Thus, MBA says brokers should be required to disclose their representation and compensation and assume the legal responsibilities of an agent when they are acting as such. The group also deems appropriate the $63,000 minimum net-worth requirement for mortgage brokers handling FHA loans; the minimum net worth for mortgage bankers involved in FHA transactions, by comparison, is $250,000.
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