Why have I never heard of my Lender?

As Mortgage Brokers, we have numerous lenders competing for our clients’ business.  Often, you will meet with your broker to sign your mortgage documents and you will not recognize your mortgage lending company.

 Why is this?

Broker or “Virtual” lenders that only deal with brokers or existing clients direct, can generally offer a lower rate and also a lower penalty calculation.  This is because instead of spending millions on Advertising and Sponsorships, they retain their capital to pass along the savings to the customer.  They also do not have the overhead of having numerous physical branches.  They pay brokers based on the mortgage size to be their mobile representatives.  The brokers are independent contractors so the lenders aren’t required to pay for benefits, etc.

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