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Special Reports
In this section of BrokerUniverse we examine a subject of key importance
for mortgage originators every month, based on special reports that run in our sister publication, Origination News.
Broker or Banker: Is a Step Up Right for You?
Is a Step Up Right for You?
If you are a mortgage broker, becoming a mortgage banker is considered the next
logical move to make in the origination business. But while becoming a banker might be the right step for some,
it might be a misstep for others.
To help those contemplating the transition, we consulted some market participants
who know the business, either because they are in it or because they provide technology that they say supports
the move.
In addition, we also asked market participants to give us a sense of how the pause
in Real Estate Settlement Procedures Act reform efforts has affected the broker-to-banker business. Interestingly,
they say that despite the de-emphasis of this catalyst, there appear to be more potential candidates for the transition
than ever in the market.
There still are many reasons to become a banker listed in this Special Report,
among them some pricing advantages. But there are, of course, challenges as well in the business and these also
are listed in the pages that follow. Among those cited is the fact that becoming a mortgage banker is considerably
different from being a broker in several ways, and the complicated changes that have to be made in order to make
the move usually require a transition period of at least a year.
For those who have sized up such risks and requirements and find the ability to
close loans in their own name worth grappling with such considerations, there is support available. The aforementioned
market participants and technology providers consulted in this report serve as examples of some of the resources
out there.
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