The mortgage industry accounts for billion dollars of transactions in a single fiscal year. Generally, a mortgage broker averages better than 1% commission on every transaction. This amount, no doubt is astonishing considering the size of deals closed by a mortgage broker.
A mortgage broker acts as a facilitator between a borrower and a lender. He bridges the message gap between the procedural requirements of the lender and non-technical demands of the borrower. In return, he charges a commission/cut for every deal closed. He is the most important person in various mortgage transactions.
A person can become a mortgage broker through a professional training course offered by an accredited institution. He has to undergo mortgage broker training in order to join a professional association. A mortgage broker training course is widely recommended for the new entrants and existing brokers (with no mortgage educational training certificate to credit) alike.
What does a trainee learn?
Mortgage broker training course trains novices in effectively negotiating with lenders, borrowers and carrying out transactions. A knowledgeable mortgage broker should be familiar with financing laws, procedures, interest rates and amortization schedule thoroughly. A professional training also teaches competitive market analysis and research work. Extensive mortgage broker training enables a trainee in preparing sales contracts and leases, guiding buyers and sellers and acting as fiduciary for sellers. A professional mortgage broker always acts neutral of the situation while closing a mortgage deal.
A mortgage broker training course involves thorough preparation by the learned professionals in the field. The coursework is very important even for a professional with huge hands-on job experience in the field but with no real educational backing. With changing trends in the industry and evolving customer choice, the course can successfully equip the candidates with a plan in catering to these product aware and internet smart customers. The course is a mandatory precondition, both for the new entrants and existing professionals.
The candidate should join a training institute and start on with the course after fulfilling all fundamental requirements.. A mortgage brokering professional must possess the Professional Indemnity Insurance and FOS & FBAA membership certificates.
The course can be availed through one of the three mediums namely:
- Interactive online courses
- Interactive workshop
- Credit to prior learning to the candidates with a prior (preferably 2 years) experience in the industry
The candidate can apply to the institute of his choice. He has to clear the licensing examination thereon and upon successful completion, he acquires the brokering license and chooses the area of operation in the mortgage industry.
The candidate has to follow the following 4 steps to complete the training program:
- Aspirant for the mortgage broking course needs to schedule himself with the concerned Department of Regulatory Service.
- A systematic compliance check is carried out on the application form and a broker –member agreement is signed.
- Thereafter, the candidate can begin with a educational course approved by ASIC (Certificate IV in Finance and Mortgage Broking FNS40810 or FNS40811).
- The candidate has to procure an “Insurance Policy” and “Surety Bond” and roll on with the National Real Estate Mortgage Licensing Agency.