Differences in Mortgage Brokers or Mortgage Specalist

8 Replies

Hello Everyone on BP,

I'm from Edmonton, Alberta, Canada and have a question in regards to Mortgage Brokers.

In terms of investing is there a difference or specialized fields for mortgage brokers / mortgage specialist?  For example there are different types of real estate agents (i.e residential agents, investing agents and commercial agents) and lawyers (family lawyers, real estate lawyers and so on...).

As well, do all mortgage brokers / mortgage specialist do the same function (search different companies and banks to find the cheapest loan available?).  Let me know if you guys/gals know or if my definition of mortgage brokers is incorrect.

Thanks!

No difference unless the broker does commercial loans 

@Richard Huynh

It is mostly just a title difference, but here in Canada often you will find Mortgage Specialists work for / are dedicated two a specific lender  ... i.e. Scotiabank calls (or use to call) their in-house mortgage agents "Mortgage Specialists".  In this situation, it is also possible, they may not be licensed.

Awesome!  Thank you! 

A follow up question, do all mortgage brokers (the ones that dont work for the bank) do the same services? Example is if I wanted to do a BRRR deal or just a 20% down payment most mortgage brokers would be able to do the same function?

Thanks!

@Richard Huynh

Yes, they do the same thing.

An independent mortgage broker who understands investors can be a wonderful resource as s/he will have access to a fail number of lenders and, perhaps, private capital as well.    Conversely, we have encountered situations over the past couple of years where some of the Big-5 banks do not make their best offerings available via mortgage brokers, but only through their in-house specialists ... a good broker will be upfront about what s/he can and cannot access and may actually direct you to an in-bank resource if it makes more sense for the deal.

@Roy N.  

Awesome! Thank you so much for answering my questions.

I really appreciate it!

Here's a simple break-down from my perspective:

1. Mortgage Broker (residential) - can provide conventional mortgage, or investor loans on 1-4 unit residential.

2. Commercial Mortgage Broker - arranges commercial loans based on their network of relationships on multifamily (5+ units), office, industrial, retail, hotel, and other revenue-generating assets, or owner-occupied commercial.

  NOTE: most of these guys that are more savvy don't brand themselves as a "broker". They could call themselves "real estate investment banking" (which could mean anything), or capital markets. We call ours "Capital Advisors" at StackSource, because we take a consultative approach to financing.

3. Commercial Mortgage Banker (independent of a bank) - Same as #2, except they often have a few exclusive lender relationships that they prefer, so more exclusive but maybe more narrow. Often will keep the servicing rights with their correspondent lender relationships.

@Tim Milazzo gets an upvote, he's spot on.  I'm a commercial mortgage broker, who would fall into his #2 category.  Capital Advisor, Debt/Equity Placement, Originator, etc. are usually the terms you'll see other than broker.  

Originally posted by @Richard Huynh :

Hello Everyone on BP,

I'm from Edmonton, Alberta, Canada and have a question in regards to Mortgage Brokers.

In terms of investing is there a difference or specialized fields for mortgage brokers / mortgage specialist?  For example there are different types of real estate agents (i.e residential agents, investing agents and commercial agents) and lawyers (family lawyers, real estate lawyers and so on...).

As well, do all mortgage brokers / mortgage specialist do the same function (search different companies and banks to find the cheapest loan available?).  Let me know if you guys/gals know or if my definition of mortgage brokers is incorrect.

Thanks!

 HI Richard,

Its just semantics to differentiate yourself to the end client.

LIke I put my self out there as a mortgage planner but in essence I could be a mortgage broker, loan officer, loan consultant, mortgage advisor, etc, etc but its all the same.  This refers to title's only obviously a loan officer can be a commercial loan officer  that only does commercial and one can only be a residential loan officer which only helps borrowers with residential 1-4 unit properties (here in the US) or even C & I loan officer which lends to businesses for inventory, working capital, and business money to run a biz.

Mortgage brokers, broker loans meaning they find you the borrower and they find the lender, negotiate a fee for themselves to prepare your file, then the file funds in the lenders name at settlement. The mortgage broker acts as a middle man in this manner.

Mortgage bankers do the same thing as mortgage brokers except that the banker has a line of credit or capital/cash and funds the loan in their own name and deals with selling that piece of paper or mortgage note later on, on the secondary market. These guys are also called direct lenders since its funded with their own capital sources even though their source may be another bank's line of credit. Once your direct lender/mortgage banker sells your mortgage note off their line of credit  it frees their line to continue to fund new loans and the process repeats itself over and over again.

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