I have a offer from a mortgage broker to refinance my home, but I'm not sure if he is a broker. How do I verify this?
First, you should ask the person if they are a mortgage banker, or a mortgage broker. Mortgage Bankers have funds or warehouse lines that they actually fund your loan with, i.e. the loan will close in the name of that company. It may then later be sold to another mortgage lender or servicer.
A mortgage broker does not fund your loan, but rather places it with a wholesale lender, such as Wells Fargo, Bank of America, etc. The loan would close in the name of the wholesale lender and your loan will most likely remain serviced by that lender. Although they do have the right to sell it to another servicer. The broker is merely providing a service to you, not the funds.
Disclosure requirements for all mortgage loans are becoming more and more detailed in order to assist borrowers with full disclosure. If the person you are talking with is a broker they should provide you with a Good Faith Estimate of Settlement costs and any fees that they are collecting from you or they receive from the wholesale lender in the form of " service release premiums" need to be clearly disclosed to you.
I'm at a disadvantage in that I do not know in which state you live but my answer would be to research at the state government level for the office that licenses mortgage lenders and brokers. During 2008 the Bush administration set up a national mortgage licensing system to begin the process of tracking mortgage brokers and lending officers. You can go to the following site for more information:
http://mortgage.nationwidelicensingsystem.org/slr/Pages/default.aspx Before moving forward please do your research to set your mind at ease that you are in fact dealing with a licensed mortgage broker or lender. Ask them to provide a copy of their license issued from your state or for their mortgage broker license number so you can follow up to insure you are dealing with a reputable firm.
First you can ask the "mortgage broker" or loan officer to show you a copy of their license.
As far as i am aware, every state requires a mortgage broker, loan officer and lender to carry a copy of their "pocket license" with them at all times.
You can call the mortgage broker's office and request a copy of that individuals license or at the very least that persons license number.
This information can be verirfied by going to your state's website on professional regulation.
You can also check on your states website. Google "your state" and the words "mortgage, broker, originator, license). you should be able to then search the state site for license holders.
You can not verify a license via the NMLS they are a middle man between the state and the broker/loan officer. To verify a license you must go to your states Department of Financial Institutions page and search by company name or persons name. Depending on your state the person can be either a licensed broker or license loan officer. In Florida I had a brokerage and was a broker, In TN I have a brokerage, am a Managing broker (owner) yet am considered a loan officer in regards to originating mortgages.
To keep your mind at ease make sure you ask all the questions in regards to your refinance. Choose your own title company if that will help...