Mortgage Brokerage in The USA
According to a 2004 study by Wholesale Access Mortgage Research & Consulting, Inc., there are approximately 53,000 mortgage brokerage companies that employ an estimated 418,700 employees and originate 68% of all residential loans in the U.S.. The remaining 32% is retail done through the lender's retail channel, which means the lender does not go through a broker.
The mortgage broker industry is regulated by 10 federal laws, five federal enforcement agencies and 49 state laws or licensing boards.
The banks have used brokers to outsource the job of finding and qualifying borrowers, and also to outsource some of the liabilities for fraud and foreclosure onto the originators through legal agreements.
During the process of loan origination, the broker gathers and processes paperwork associated with mortgaging real estate.
Read more about this topic: Mortgage Broker
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