| In today's mortgage market consumers are spoilt for | | | | securities"). They can offer their products directly to |
| choice when it comes to applying for a home loan. | | | | the borrower or through their accredited mortgage |
| Banks, building societies, mortgage managers and | | | | brokers, or both. They deal directly with the consumer |
| mortgage brokers are all available for you to consult. | | | | and manage the relationship for the term of the loan. |
| Most of us are familiar with the first two; fewer of us | | | | To try to reduce confusion, a group of mortgage |
| know how they are different. And what exactly do | | | | managers have recently united to form the Council of |
| they represent? | | | | Mortgage Lenders (CML). The CML has been |
| The terms "mortgage manager" and "mortgage | | | | established to promote the distinct role of mortgage |
| broker" can be perplexing. | | | | managers and clarify the differences between the |
| For most borrowers, the market is becoming more | | | | groups. "The problem is that all lenders have been |
| confusing, despite the fact that many people are now | | | | thrown together in the same mixing pot," the CML said |
| more educated about mortgages and property than | | | | in a statement. |
| they were five years ago, and there is a growing need | | | | New legislation managed through the NSW Office of |
| for an explanation of what the different roles mean for | | | | Fair Trading states that "mortgage managers" who |
| borrowers. | | | | don't deal with the public or who only sell their own loan |
| Mortgage brokers can arrange finance from a range | | | | products, are exempt from having a Finance Broking |
| of financial organisations. Often a broker sells loans for | | | | Contract (FBC). However, an FBC is required if a |
| a panel of 20-30 different lenders. In return, they | | | | mortgage manager provides information or an offer |
| receive upfront and ongoing commissions. | | | | for the loan product or on behalf of another lender. |
| They can arrange finance where a property - | | | | When selecting someone to help with your next home |
| owner-occupier, rental investment property, or | | | | loan it should still come down to the experience and |
| commercial property - is being used to secure a loan. | | | | qualifications of the individual and the company, the |
| Mortgage managers manage securitised funds | | | | systems in place to process and monitor your loan |
| (essentially a pool of investors' cash) on behalf of the | | | | account and the level of service promised and |
| supplier of the funds (usually a large financial institution | | | | delivered. |
| who has issued bonds or "mortgage-backed | | | | |