The Role Of The Bond Originator
A bond originator (in South Africa) or mortgage broker (in other countries) acts as an intermediary who sources home loans on behalf of individuals or businesses. Traditionally, banks and other lending institutions have distributed their own products. However as markets for mortgages have become more competitive, the role of the bond originator has become more popular.
In competitive mortgage bond markets many lenders use an array of rate offers and other incentives to attract customers. To many consumers, due to their infrequent purchases of home loan products, the mortgage bond market may appear confusing and somewhat daunting. A mortgage bond originator can guide them through the process of selecting a suitable bond and offer home loan and property related financial advice.
For borrowers with poor credit records, or other unusual circumstances, finding a lender may be difficult. A bond originator, having specialised knowledge and multiple lending sources, will normally be a valuable resource in obtaining financing.
Bond Originators receive a fee from the banks and not their clients. The sheer volume of business provided by the mortgage originator to the banks, gives the originator negotiating power to muscle low rates for their clients. Usually the home loan process is much quicker when using a bond originator.
What Are The Lending Criterea Of Banks/Lenders?