It's like going straight to the warehouse instead of the retail store," explains Mark Bittle, president of the Iowa Association of Mortgage Brokers and owner of Mortgage Innovations LLC in West Des Moines.
A mortgage broker receives compensation for the loans that he
originates, just as any other business entity would.
The Federal Trade Commission
regulates brokers on the federal level.
Local mortgage brokers are regulated for compliance by the Finance Bureau of the Iowa Division of Banking
, which has the authority to do regular examinations of mortgage brokers.
says that every mortgage broker must have a license number on record with the Iowa Division of Banking
and must adhere to the same state and federal regulations as any other mortgage lending institution.
"The mortgage industry is one of the more regulated industries in the marketplace today.
Regardless of whether they're a bank, credit union, mortgage broker, or other financial institution, if they write mortgage loans they must follow RESPA, TILA, and the fair lending laws," he
Mortgage brokers can also offer additional services such as home equity loans, lines of credit, and commercial financing.
As of July 1, 2006, all mortgage brokers have been required by law to undergo national criminal background checks by
and to be registered with the Iowa Division of Banking
, a change from past procedures.
says the Iowa Association of Mortgage Brokers
works to ensure that today's homebuyers receive the best service available.
"We want to educate the brokers of the community and make sure that we are doing well for the consumer," he