Do I Capable To Do If I Acquire That?
Q: does anyone know what exactly is a mortgage license and what do I capable to do if I acquire that?
A: Contact your state or provincial government. You don't say where ytou are located, but licensing of mortgage brokers is a function of the state or province in North America, not the federal governments. And not all states and provinces license mortgage brokers. And even those that do frequently exempt mortgage brokers unless they sell mortgages to the public. The only way to figure out the story is to contact your state regulatory agencies. let's assume you are in a state that does not license mortgage brokers. Then the license you are inquiring about does not exist. If you want to deal in mortgages, just go ahead and do it. But now let's suppose you're in a state like the one I'm in. The state does not require a license if you work for a bank or mortgage company that sells mortgages to investment companies like Fannie Mae, Freddie Mac, and so on. These are huge companies that hold trillions of dollars of mortgages. Fannie Mae, for example is listed on the New York Stock Exchange. The reason the state does not require a license if all you do is sell mortgages to these companies is because they figure the buyers are extremely sophisticated, so there is no danger that you could take advantage of them or do something illegal. But if you want to sell mortgages to private citizens -- just people like you and me -- then the state I'm in requires that you have a license. In order to get the license they do not require an examination or education, but they do conduct a background check (fingerprints, etc.) to make sure that you have not been convicted of a crime. I believe you are also required to post a bond (insurance), so that if you steal money from someone they can recover the loss. Mortgage brokers engage in various activities. Most of them originate the loans and then sell them. Some of them just broker loans that were already originated. For example, a mortgage broker might contact people who have sold real estate and carried the contract. Sometimes these people wish they had the cash from the contract. If so, they can list the contract for sale with the mortgage broker. The mortgage broker then finds a buyer for it, and charges the seller a fee for the service. Notice that this is the same way that a real estate broker works to sell real estate. There are also mortgage brokers who represent borrowers who are looking for a loan. This is an area where there is a lot of misrepresentation and dishonesty. Usually the mortgage broker will charge the borrower a fee for finding a lender willing to make the loan. But some mortgage brokers prey on people desperate to borrow money by charging them the fee up front, and then never find them a lender. I hope that clarifies a bit what a mortgage broker does and why licenses are required for some kinds of mortgage brokerage activity.
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