Research On The Position And Function Of Mortgage Broker In America

A mortgage broker acts as an intermediary who sources mortgage loans on behalf of individuals or businesses. They have three features:first, they do not create loans directly, they promote trades between lenders and borrowers; second, they keep relationships with a number of lenders and borrowers; third, they run their business for the purpose of getting commissions. Since the 1970s,the U.S housing finance market had undergone major changes. With the development of mortgage-backed security as well as more and more sophisticated level of technology and information technologies, new professional bodies araised through vertical dis-integration, such as mortgage banks, mortgage brokers, warehouse lenders, securitizers, sevicers and investors etc. Mortgage brokers was generated in the process of this dis-integration, and has become major force in recent years. According to Wholesale Access(2005),in 2004,there were about 53,000 mortgage broker firms in the USA, and about 68% of all housing finance was initiated through a mortgage broker. In 2006,39% of the sub-prime loans and Alt-A loans were provided by mortgage brokers, satisfying many Americans who wanted to get non-confirm loans. The question of whether the services of brokers is conducive to the development of the housing market has attracted the attention of scholars and discussion.At present, because the construction of the main body of housing finance market is not perfect in our country, the research on the role of mortgage broker is deficit. Therefore, the study on mortgage broker system and mortgage market in America is of great significance on the construction of housing finance in our country. We should absorb the advanced experience from the American mortgage market and the mechanism of mortgage brokerage.Meanwhile we should combine it with our country's situation and explore the pattern which suits to the development of mortgage market in our country.This article make references of the experience of American housing finance market, combining theory and practice, qualitative analysis and quantitative analysis, using foreign theories and meeting actual situation of our country.This article also give a deep discussion of the direction of mortgage development.