Blog Articles from Allegiant Mortgage, LLC

What is the difference between a mortgage broker and a mortgage lender?

March 19th, 2015 4:34 PM by Rose Tignor

      Good Faith Estimates can vary in appearance depending on who the generating party is.  There are two types of entities who help consumers obtain residential mortgages.  A lender is a financial institution that makes loans directly to the consumer. A broker does not directly lend money, but instead acts as an agent finding a lender for the consumer. Brokers work with many lenders giving them more lending options than a traditional lender, i.e. banks. 

Furthermore, legislation was enacted to ensure that consumers were paying origination only once on a single transaction.  This can be confusing for consumers because even though new laws exist lenders are still not required to disclose any back end compensation or origination tied to the interest rate formerly known as “yield spread premium” (YSP) or “service release premium” (SRP).  However, mortgage brokers are required to fully disclose any front-end AND back-end compensation.

Here at Allegiant Mortgage, LLC we are a full service broker.  This means we have more than one set of programs or underwriters. We work with over 20 lenders giving us more lending power to help those who need it whether you're a low score borrower or in the market for a jumbo loan.  Let us help you today! 

Posted by Rose Tignor on March 19th, 2015 4:34 PM

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