Mortgage Brokers

Any entity, engaged in, assisting, arranging funding, or negotiating mortgage financing, in behalf of a client, in consideration of, compensation in the form of origination, either by lender or borrower. 

MTG Brokers Corp. compares loan products among numerous Residential & Commercial lending institutions for the best rate, term, and the least fees in behalf of a clients best interest. 

        Why Use A Mortgage Broker

Bank loan officers are often limited by branch specific loan programs that incorporate restrictive borrower acceptance guidelines (many banks don't lend to borrowers or properties that fall outside perfect lending criteria) and if a loan gets declined for any reason, the loan is considered dead.

Brokers know the various Prime and Sub-Prime market / lenders, and their available mortgage programs offered (each lender has approx. 200 loan programs available).  Whereas, bank officers tend to know "A" paper only and then just a handful of what is available.  Mortgage brokers are highly experienced in resolving unexpected or unusual underwriter conditions, and know how to qualify a Commercial Property or Residential Borrower through (numerous) dealings with numerous lenders. 

Mortgage Brokers also interface throughout all phases of the loan with: HOA's, Title, Escrow, Insurance, and other third parties, while complying with Conforming Agencies (FNMA / FHLMC), Government entitlements (FHA/VA), State & Local agencies, etc.which allows mortgage brokers to acquire and fund loans easier by knowing the processing system.

Mortgage brokers have the ability to quickly analyze a properties or borrowers situation; and best fit the client with the loan that's right for the properties or borrowers needs .....not the broker.

• Most independent mortgage experts advise selecting a mortgage broker and not a mortgage lender.
  

• Institutional lenders can only offer their rates and loan programs (not always in the clients best interests).
  

• MTG offers portfolio loan lines and traditional financing, that provide clients a wider range of mortgage possibilities with a higher probability of acquiring financing.
  

• Bankers offer MTG loans & rates at discount that encourage home loans and expand market share.
  

• Unlike a Correspondent lender, a Mortgage Broker is not committed to the loans of a single sponsor.
  

• Wholesale Lenders offer loans to brokers at a lower cost than their retail branches offer the general public.
  

• If a loan gets declined for some reason, a mortgage broker can simply repackage the loan and submit it to another lender (opposed to the institutional lender that when a loan is declined its considered dead).
  

• Mortgage Brokers can typically close a loan within 2 weeks (a bank committee takes that long to OK it).
  

• B/C Lenders can't provide "A" paper loans to qualifying borrowers (costing clients higher rates and fees).

        Lending Institutions

Banks and Savings & Loans

Banks, plus, Savings & Loan institutions usually operate as portfolio lenders, mortgage bankers, or a combination of both.

Correspondents

Correspondent typically refers to a company which originates and closes home loans in their own name, (MTG, closes in the name of the lender) then sells them individually to a larger lender, called a sponsor.   The sponsor acts as the mortgage banker, re-selling the loan to Fannie Mae or Freddie Mac, as part of a pool of loans. 

The sponsor typically underwrites and funds the mortgages (correspondent may fund the loans they originate).  Correspondents are usually dedicated to one sponsor (typically an FHA sponsor), if they don't meet all the requirements of HUD to be their own loan originator.

Credit Unions

CU's typically operate as correspondents, and if large enough, operate as portfolio lenders or mortgage bankers.

Portfolio Lenders

An institution which lends it's own money and originating their own portfolio of loans for itself.  Portfolio lenders often retain their loans and are not concerned with selling them on the secondary market, therefore, they can exceed the envelope of Fannie Mae & Freddie Mac guidelines (expanding lending criteria such as credit worthiness guidelines, loan amount limitations, avoiding income and employment conditions, and allowing investors to purchase multiple properties, etc.).

Portfolio lenders typically (consist of the larger banks and savings & loans institutions) fit into the category of mortgage bankers because they also offer Traditional and Government - FHA / VA financing as well as their own line of mortgages. 

Mortgage Bankers

A Mortgage Banker is a lender that originates loans and create pools of loans to sell directly to Fannie Mae, Freddie Mac, and other loan investors (such as those servicing Jumbo or other non-conforming loans).  Mortgage Bankers may have wholesale lending divisions and service their own loans.

Direct Lenders

Direct lenders draw up loan documents and fund the loans in their own name and typically fit into the category of mortgage bankers or portfolio lenders.  Direct lenders such as Banks and Savings & Loans can use deposits to fund mortgage loans, but usually use "warehouse lines of credit" from which they draw the money to fund the loans.

Warehouse Lenders

The company either directly or through its syndicate and / or participant banks provides temporary financing on certain one to four single-family residential dwellings, which have been originated.  All of the loans are pre-sold in the secondary market to large institutional investors, many of whom are New York Stock Exchange companies.

Warehouse lines of credit are real estate secured short-term lines of credit that allow mortgage bankers to fund loans into the secondary market until the loans are purchased by the end institutional investors. 

Wholesale Lenders

Most mortgage bankers and portfolio lenders also act as wholesale lenders, catering to mortgage brokers for loan origination. Some wholesale lenders do not even have their own retail branches, relying solely on mortgage brokers for their loans.

Imperfect Credit Lenders

For borrowers with less than perfect credit criteria ("B/C and D" Credit Ratings) receive loans based on non-conforming guidelines.  Non-Conforming Mortgage Lenders provide loans to borrowers and for properties that do not meet traditional, conforming, and conventional loan requirements per lender guidelines (as based on HUD home loan regulations).

Almost any conforming loan type can be substituted with a non-conforming, non-traditional, non-conventional mortgage loan (Whether the loan is for a First lien positioned loan, or Second mortgage loan) if any of the following items fall outside the lender conforming criteria guidelines.

• Loan amount

• Imperfect Credit

• Income Ratio

• Property

• Employment

• Residence

The main differences between conforming and non-conforming mortgages is that Non-traditional lenders assess higher rates and fees when there is a lower credit grade, a lack of income documentation or a high loan-to-value ratio.

City & State Lenders - (Secondary Financing Assistance)

Affordable Seconds - Are established, documented secondary financing or financial assistance programs administered by an Agency that meet the following criteria:

• The program must include specific procedures to provide Borrower qualification and processing and loan program administration on an ongoing basis.

• The interest rate, if any, should not be higher than 2% above the interest rate of the Affordable Mortgage.

• Interest, if any, should be payable monthly as accrued, without negative amortization.

• No balloon payments should be due prior to the maturity or payment in full of the Affordable Mortgage.

• Affordable Second loans may only consist of a second-lien mortgage.  Third liens are not acceptable (i.e., there may be no more than two (2) liens on the property).
  

Community Second - A Community Second is an established, documented subordinate financing or financial assistance program, commonly referred to as a Community Second mortgage, which is sponsored/administered by an agency (as defined below) and meets the following standard criteria:

Community Seconds are the only eligible subordinate financing.  Funds from the Community Second can be applied toward closing costs and prepaid items.  Any excess amount after satisfying closing costs, prepaid item requirements, and the minimum borrower down payment is to be applied towards the down payment.

• The program guidelines must include specific procedures to provide applicant qualification, and processing and loan program administration on an ongoing basis.

• The interest rate, if any, shall not be higher than the interest rate of the Affordable first mortgage.

• The interest, if any, shall be due prior to maturity or payment in full of the Affordable first mortgage.

• No balloon payments shall be due prior to the maturity or payment in full of the Affordable first mortgage.

• No prepayment penalty.

• Negative amortization is not allowed.

• May be forgivable over time.

Note:  There are no restrictions on the lien position of the Affordable Community Second, provided the program guidelines do not require the loan to be in second lien position.

Agency - The sponsor of a Secondary Financing Program - may be:

• A duly authorized authority or agency of the state, local, or municipal government;

• A not-for-profit, 501(c)(3) corporation or a tax exempt religious organization

• The Borrower's employer.

• Matching Borrowers with Lenders
• Benefits of Multiple Lender loan quotes
• Save Money
• Save Time
• Impossible loans
• Save your credit Score
• You are in control. Negotiate.
  
  

Matching Borrowers with Lenders:
We are working directly with over 140 Residential Lenders, and over 300 Commercial Lenders and dozens of Investor Only Lenders including dozens of Hard Money and no Credit Lenders that are ready to fund loans and service you....and more joining. Lenders are matched to your requested loan to bring you the most competitive rate and term. Your loan request has maximum exposure, greatly increasing the probability of getting the best possible loan.


Saving you money
Due to the volume of loans we process, lenders are eager to offer us loan rates of 0.25% - .5% less other mortgage brokers can obtain. a 0.25% difference in the interest rate could amount to a savings of $124,000 over the length of a $200,000 loan. We will also search out lenders with the least amount of points....again, saving you even more money, i.e. Saving 1.0 point on a $200,000 loan means not paying $3,000 at the closing table.


The Time saving benefit to you is enormous....
We package your loan in each lenders preferred forms to maximize your potential for getting a better loan.

It could take you months just to search what lenders have the best rates, least points, and service loans in your region of the nation. Some loans seem impossible because only a select number of lenders may finance your particular loan type or the circumstances of your loan request.....we know these lenders (one day out of bankruptcy, get out of foreclosure, in foreclosure rescue, no credit, no credit score, less than 6 months ownership) etc...

Finding these lenders is like looking for a needle in a haystack and we have them waiting and eager to finance your mortgage (some of their bosses may have just told them that if they don't get more loans soon...somebody may get fired).

You don't have to be interviewed by each of them seperately....we tell the lender what your loan parameters are and they tell us if they have a loan for you. The MTG lender data base continually integrates lender loan programs so your loan request is packaged and delivered quickly to as many lenders that can meet your requested loan type...you just wait for lender responses and then compare to see what's best for you....

Saving Your Credit
Shopping on the Internet with many lenders can bring your credit score down...and that would mean a higher interest rate and make it harder to get lenders to compete for your mortgage. We pull your credit once...and tell all the lenders your score...thus saving you money and more importantly...Your Credit Score!

MTG also provides a Mortgage Consulting Service