Upfront Mortgage Broker (UMB)
A mortgage broker who sets a fee for services, in writing, at the outset of the transaction and acts as the borrower's agent in shopping for the best deal. Customers of UMBs pay the broker's fee plus wholesale loan prices, which are disclosed at the customer's request. In contrast, other mortgage brokers (MBs) add a markup to the wholesale prices and quote only the resulting 'retail prices' to customers. Most MBs reveal their markup only in required disclosures after an application has been submitted. UMBs credit customers with any rebates they receive from lenders or home sellers that would otherwise increase the broker's fee beyond what was agreed upon. Such rebates are often an added source of revenue to MBs. Once the UMB's fee has been established, the UMB's interests are largely aligned with those of customers. In contrast, MBs are in a conflict situation with customers.
Popular Mortgage Terms
A government-owned or -affiliated lender that makes home loans directly to consumers. With minor exceptions, government in the U.S. has never loaned directly to consumers, but housing banks ...
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Protection for a borrower against the danger that rates will rise between the time the borrower applies for a loan and the time the loan closes. Rate protection can take the form of a ...
A documentation requirement where the applicant's assets are not disclosed. ...
The amount the borrower owes at maturity. ...
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