How were sub-prime mortgage brokers paid?
- Thread starter Murphdx2
- Start date
Brendan Burgess
Founder
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Hi Murphy
Your question is difficult to understand. I am guessing what your question is and I have edited the title accordingly.
What does the word "(specialised)" mean? Are you asking
"How were mortgage brokers who specialised in sub-prime mortgages paid?"
If that is your question, then I would say that they were paid the same way as any other broker - usually by commission from the lender. However, some charged their customers fees as well.
Are you asking if your mortgage broker had indemnity insurance? I don't know, but I would guess that the Central Bank makes it a requirement of authorisation.
You should probably provide further information as I think it would be difficult to prove professional negligence against a mortgage broker.
Brendan
Your question is difficult to understand. I am guessing what your question is and I have edited the title accordingly.
What does the word "(specialised)" mean? Are you asking
"How were mortgage brokers who specialised in sub-prime mortgages paid?"
If that is your question, then I would say that they were paid the same way as any other broker - usually by commission from the lender. However, some charged their customers fees as well.
Are you asking if your mortgage broker had indemnity insurance? I don't know, but I would guess that the Central Bank makes it a requirement of authorisation.
You should probably provide further information as I think it would be difficult to prove professional negligence against a mortgage broker.
Brendan
Thank you for your reply Brendan.
I walked in to a broker for a remortgage and walked out with a sub prime mortgage from a specialist lender as it was put to me. Never heard of it beforehand sub prime or otherwise.
I believe it was based on the American sub prime market which it seems the higher the lenders interest rate was the more the broker was paid.
Is there any truth in this ? Would anyone know or have a similar experience?
I walked in to a broker for a remortgage and walked out with a sub prime mortgage from a specialist lender as it was put to me. Never heard of it beforehand sub prime or otherwise.
I believe it was based on the American sub prime market which it seems the higher the lenders interest rate was the more the broker was paid.
Is there any truth in this ? Would anyone know or have a similar experience?
Brendan Burgess
Founder
- Messages
- 52,048
You need to give more details.
What is the name of the lender?
What interest rate are you paying now if you still have the mortgage?
Why were you remortgaging?
Had you a bad credit record?
The broker should have written to you explaining your options. If they said "With your credit record you won't be able to get a loan from a mainstream bank, but we can get a loan from a specialist lender at a higher rate." then they have probably done their job.
Brendan
What is the name of the lender?
What interest rate are you paying now if you still have the mortgage?
Why were you remortgaging?
Had you a bad credit record?
The broker should have written to you explaining your options. If they said "With your credit record you won't be able to get a loan from a mainstream bank, but we can get a loan from a specialist lender at a higher rate." then they have probably done their job.
Brendan