does anyone know what exactly is a mortgage license and what do I capable to do if I acquire that?
does anyone know what exactly is a mortgage license and what
do I capable to do if I acquire that?
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.