Site under construction what follows is just page fill at present Welcome to Mortgage Brokers UminaMortgage brokerage in Australia Mortgage Brokers have been active in Australia since the early 1980s however they have only become a dominant force in the mortgage industry during the late 1990s on the back of aggressive marketing by Aussie Home Loans & Wizard Home Loans. Approximately 35% of all loans secured by a mortgage in Australia are introduced by mortgage brokers Mortgage Brokers Umina are now regulated by the Australian Securities and Investments Commission. The new national consumer credit protection legislation includes a licensing regime and responsible lending obligationsMortgage Brokers are also required to be a member of an external dispute resolution provider such as the Credit ombudsman service Limited (COSL). Further, some lenders require accredited brokers to be a member of an industry body such as the Mortgage & Finance Association of Australia (MFAA). Australian mortgage brokers in {Area}do not usually charge a fee for their services as they are paid by the lenders for introducing loans They are paid an up front commission that is on average 0.66% of the loan amount and an ongoing trail commission that is on average 0.18% of the loan amount per annum paid monthly. These commissions can vary significantly between different lenders and loan products, especially since the commission re-alignments introduced by Australian banks during June to August 2008 in reaction to the Subprime mortgage crisis. Although mortgage brokers are paid commissions by the lenders this does not alter the final rate or fees paid by the customer as it may in other countries. Mortgage brokers do not have the ability to charge the customer a higher or lower rate and in return obtain a higher or lower commission. A mortgage broker in Uminaacts as an intermediary who brokers mortgage loans on behalf of individuals or businesses. In Australia, banks and other lending institutions have sold their own products. However as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular. Today in most developed mortgage markets mortgage brokers are the largest sellers of mortgage products for lenders. Mortgage brokers exist to find a bank or a direct lender that an individual seeks with a specific loan the individual is seeking. The majority of mortgage brokers are regulated to ensure compliance with banking and or finance laws in the jurisdiction of the consumer; however, the extent of the regulation depends on the jurisdiction.
Tasks of a Umina mortgage brokerSite under construction what follows is just page fill at present The work undertaken by the broker will depend on the depth of their service and liabilities. Typically the following tasks are undertaken:
The Difference between a Umina mortgage broker and a loan officerA mortgage broker works as a conduit between the buyer and the lender, the loan officer typically works directly for the lender. A mortgage broker is normally registered with the state, and personally liable (punishable by revocation or prison) for fraud for the life of a loan. A loan officer works under the umbrella license of their current institution, typically a bank or direct lender. Both positions have legal, moral, and professional responsibilities as well as liabilities to prevent fraud and fully disclose loan terms to both consumer and lender. Additionally, agents of mortgage brokers may refer to themselves as "loan officers". Typically, a mortgage broker will make more money per loan than a loan officer, but a loan officer can utilize the referral network available from the lending institution to sell more loans. There are mortgage brokers and loan officers at all levels of experience. A large segment of the mortgage finance industry is commission based. Potential clients can compare a lender's loan terms to those of others through advertisements or internet quotes. In the 1970s, mortgage brokers did not have access to wholesale markets, unlike traditional bankers. Today, mortgage brokers are more competitive with their access to wholesale capital markets and pricing discounts. A mortgage broker has lower overhead costs compared to large and expensive banking operations because of their small structure They can lower rates instantly to compete for clients. On the other hand, larger companies are less competitive since they provide their sales representatives their fixed rate sheets. Loan officers often cannot reduce their companies' profit margin and may be higher or lower than the marketplace, depending on the decision of managers. Thus, mortgage brokers have gained between 60 to 70% of the marketplace Site is under construction what follows is page fill Mortgage brokers can obtain loan approvals from the largest secondary wholesale market lenders in the country. For example, Fannie Mae may issue a loan approval to a client through its mortgage broker, which can then be assigned to any of a number of mortgage bankers on the approved list. The broker will often compare rates for that day. The broker will then assign the loan to a designated licensed lender based on their pricing and closing speed. The lender may close the loan and service the loan. They may either fund it permanently or temporarily with a warehouse line of credit prior to selling it into a larger lending pool. The difference between the "Broker" and "Banker" is the banker's ability to use a short term credit line (known as a warehouse line) to fund the loan until they can sell the loan to the secondary market. Then they repay their warehouse lender, and obtain a profit on the sale of the loan. The borrower will often get a letter notifying them their lender has sold or transferred the loan. Bankers who sell most of their loans and do not actually service them are in some jurisdictions required to notify the client in writing. For example New York State regulations require a non servicing "banker" to disclose the exact percentage of loans actually funded and serviced as opposed to sold/brokered. Brokers must also disclose Yield spread premium while Bankers do not. This has created an ambiguous and difficult identification of the true cost to obtain a mortgage. The government created a new Good Faith Estimate (2010 version) to allow consumers to compare apples to apple in all fees related to a mortgage whether you are shopping a mortgage broker or a direct lender. The government's reason for this was some mortgage brokers were utilizing bait and switch tactics to quote one rate and fees only to change before the loan documents were created. Although ambiguous for the mortgage brokers to disclose this, they decide what fees to charge upfront whereas the direct lender won't know what they make overall until the loan is sold. Sometimes they will sell the loan, but continue to service the loan. Other times, the lender will maintain ownership and sell the rights to service the loan to an outside mortgage service bureau. Many lenders follow an "originate to sell" business model, where virtually all of the loans they originate are sold on the secondary market. The lender earns fees at the closing, and a Service Release Premium, or SRP. The amount of the SRP is directly related to the terms of the loan. Generally, the less favorable the loan terms for the borrower, the more SRP is earned. Lender's loan officers are often financially incentivized to sell higher-priced loans in order to earn higher commissions. Secondary market influenceEven large companies with a lending license sell, or broker, the mortgage loan transactions they originate and close. A smaller percentage of bankers service and keep their loans than those in past decades. Banks act as a broker due to the increasing size of the loans because few can use depositor's money on mortgage loans. A depositor may request their money back and the lender would need large reserves to refund that money on request. Mortgage bankers do not take deposits and do not find it practical to make loans without a wholesaler in place to purchase them. The remainder may be in the form of property assets (an additional $2.00), an additional credit line from another source (an additional $10,000,000) That amount is sufficient to make only two median price home loans. Therefore, mortgage lending is dependent on the secondary market, which includes securitization on Wall Street and other large funds. The largest secondary market or"wholesale" institutions are Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, commonly referred to as Fannie Mae and Freddie Mac, respectively. Loans must comply with their jointly derived standard application form guidelines so they may become eligible for sale to larger loan servicers or investors. These larger investors could then sell them to Fannie Mae or Freddie Mac to replenish warehouse funds. The goal is to package loan portfolios in conformance with the secondary market to maintain the ability to sell loans for capital. If interest rates drop and the portfolio has a higher average interest rate, the banker can sell the loans at a larger profit based on the difference in the current market rate. Some large lenders will hold their loans until such a gain is possible. The selling of mortgage loans in the wholesale or secondary market is more common. They provide permanent capital to the borrowers. A "direct lender" may lend directly to a borrower, but can have the loan pre-sold prior to the closing. Few lenders are comprehensive or "portfolio lenders". That is, few close, keep, and service the mortgage loan. The term is known as portfolio lending, indicating that a loan has been made from funds on deposit or a trust. That type of direct lending is uncommon, and has been declining in usage An example of a portfolio lender in Australia Improved consumer lawsThe laws have improved considerably in favor of consumers. A mortgage broker must comply with standards set by law in order to charge a fee to a borrower. The fees must meet an additional threshold, that the combined rate and costs may not exceed a lower percentage, without being deemed a "High Cost Mortgage". An excess would trigger additional disclosures and warnings of risk to a borrower. Further, the mortgage broker would have to be more compliant with regulators. Costs are likely lower due to this regulation Mortgage bankers and banks are not subject to this cost reduction act. Because the selling of loans generates most lender fees, servicing the total in most cases exceeds the high cost act. Whereas mortgage brokers now must reduce their fees, a licensed lender is unaffected by the second portion of fee generation. This is due to the delay of selling the servicing until after closing. Therefore, it is considered a secondary market transaction and not subject to the same regulation. If you are a Mortgage Broker servicing Umina this site with its high ranking position and current client search traffic can immediately be linked to your site or customised as a new lead generating site for you with your content, contact details etc. Please note: This site is under construction. Only page fill at this point.
. Welcome to Umina Mortgage Broker
Our offices are located at High Street, Umina, we specialise in Mortgage Broker advice on Pension and Retirement Advisor planning, including Pensions in Divorce and Self Invested Personal Pensions, Investments, Insurance, Tax Advisor , Inheritance Tax Advisor and overall Mortgage Broker . We are happy to offer to work on a fee basis, commission basis or a combination of the two, whichever suites you best. An initial consultation, usually lasting approximately 1 hour, is at no charge and we can decide together in that time the best way we can provide you with accurate, appropriate advice and Advisor . When considering their Mortgage Broker and wealth management, many clients have established their aspirations and objectives for the future. These plans can change as circumstances change and we recommend that you review your Mortgage Broker on a regular basis to ensure that your pensions, savings and investments are still in tune with your original (and changing) plans. Many feel that an annual review is appropriate, but personal changes can occur at anytime. However, don't forget that changes in legislation and investment markets can have an effect on what you want to achieve with financial services. Using pensions as an example, a regular review is recommended to ensure that they are meeting your expectations and on target to meet your aspirations for the future.
One 'Advisor tool' that should help with your investment or pension Advisor is asset allocation. This enables us to consider a spread of investment and pension funds over various sectors of the investment markets. This can provide diversity and the potential to reduce investment risk whilst helping to maintain returns. Here at Umina Mortgage Broker & Planners we look forward to helping you with your independent Mortgage Broker . Our success has evolved from the referrals our existing clients provide to us, we trust that the service and advice that we offer meets your needs both now and into the future. Assuring you of our best service and attention at all times. The Umina Mortgage Broker Planners Team. John Jones - Mary Smith - Bill Brown |
We are a Mortgage Broker and Financial Planners based in Umina, offering financial planning and advice for individuals, businesses and charitable trusts. 
Umina Mortgage Broker & Planners are well placed to help you with a review and to provide any additional recommendations if required. Let us know what you want to achieve in retirement and we will look forward to helping you with your Mortgage Broker strategy.