• Government Agency and GSE Guidelines
  The government agencies and Government Sponsored Enterprises (GSEs) that fund, insure, and/or purchase mortgages have guidelines for originating mortgages. Agencies include the Federal Housing Administration (FHA), the Veterans Administration, and the Department of Agriculture. The GSEs include Fannie Mae and the Freddie Mac.
• NAMB Guidelines: Code of Ethics, Best Business Practices, Model Disclosure, and Professional Certification
  NAMB had developed many industry guidelines for its members to ensure that NAMB members offer the highest quality products and services to both consumers and lenders. NAMB sponsors ongoing conferences and seminars and administers a professional certification program to promote these guidelines to its members and the public.
• In-House Quality Control (QC) Policies and Procedures
  Over 71% of Mortgage Brokers have QC policies and procedures in place. These include written documentation, staff training, and independent reviews.

A mortgage broker is an independent real estate financing professional who specializes in the origination of residential and/or commercial mortgages.  There are approximately 20,000 mortgage brokerage operations across the nation that originate over half of all residential loans in the US.

A mortgage broker is also an independent contractor who markets and originates loans offered by several wholesale lenders.  By Offering superior market expertise and direct access to many different loan programs, a mortgage broker provides the consumer the most efficient and cost-effective method of obtaining a mortgage that fits the consumer's financial goals and circumstances.

• There are currently 20,000 mortgage brokerage operations in the US, employing an estimates 20,000 people. Since mortgage broker represent well over half of the home loans originated today, it is not surprising that they originate more mortgages than any other single loan source group in this nation.
• In 1996, almost $900 billion in home loans were funded, $450 billion, or 52% of which were originated by mortgage brokers; all thrid-parties (e.g., brokers, correspondents, etc...) represent $675 billion, or 75% of the home loans originated in 1996.
• The brokerage industry plays a significant role in the mortgage lending process and the American economy by increasing competition and driving down costs. The expansive mortgage broker network allows loan wholesalers of all sizes to immediately gain a national presence without incurring the great expense of national advertising and maintenance of branch offices.
• The mortgage brokerage industry is regulated by TEN federal laws, FIVE federal enforcement agencies, and over FORTY-FIVE state laws or licensing boards. Additionally, brokers typically have some type of Quality Control (QC) requirements and NAMB members also adhere to a strict Code of Ethics and Best Business Practices guidelines.

• Real Estate Settlement Procedures Act (RESPA) Prohibits cost-increasing abusive practices such as kickbacks and referral fees and requires advance disclosure of settlement service costs.
• Truth-in-Lending (TILA) Requires disclosure of the cost of credit to the consumer and the terms of repayment.
• Equal Credit Opportunity Act (ECOA) Prohibits discrimination in lending.
• Fair Credit Reporting Act (FCRA) Stipulates the requirements of users of credit reports and disclosure to consumer.
• State Licensing Forty-five states currently have state licensing requirements for mortgage brokers in addition to ten federal laws and supplemental regulation