Sep

24

Bank and Nonbank Playing Field Now Level?

Filed Under Mortgage Bankers Association, National Association of Mortgage Brokers (NAMB) 
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The legal and regulatory playing field between nonbank and bank originators has been leveled, according to Ruth Dillingham, an attorney working for a division of First American Title Insurance.

Ruth told attendees at the New England Mortgage Banking Conference that today’s market is one where both banks and brokers face largely the same legal and regulatory restrictions. Among the changes that nonbank players must now adjust to are stricter requirements about having a buyer for loans before they can take certain actions, she said.

The only two major differences are that mortgage brokers fully disclose terms of a mortgage loan to their clients and banks do not have to.

Another very important frame of difference is that a consumer will benefit from dealing with a mortgage broker more than directly with a bank. The reason that are stated are that a mortgage broker typically has hunders of lenders to choose from, this allow for the best mortgage interest rates to be found, the best program and terms to choose from. All of which should save a consumer thousands of dollars.

Typically, a mortgage bank can only offer to their one set of guidelines.

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