By Eleanore D. Sanchez
The finance market is becoming more complex and home mortgages are not as simple to secure and manage as they used to be, given the extensive options available to the consumer.
Enter the mortgage manager.
A mortgage manager specializes on organizing funding for home buyers and property investors, according to the Mortgage and Finance Association of Australia.
Mortgage managers are also “responsible for arranging the funds for your loan and the ongoing, prudent management through each phase of your loan’s life,” according to the association.
Simply put, a mortgage manager’s involvement in your mortgage extends beyond the simple securing of your loan. He or she is a finance specialist who will make sure that the borrower is guided through every step of the loan process until it is repaid in full.
“One of the advantages of mortgage managers is that they tend to be smaller. You’re unlikely to face the impersonal, production line treatment from a mortgage manager that you might receive from a big lender,” the Future Financial website said.
Also, unlike lenders, mortgage managers do not field their own money to finance your home mortgage. They source money from various sources, such as banks and funds. Thus, their fee structure is different from that of large lenders.
“Like mortgage brokers, mortgage managers have application fees on the home loans they source, which aim to offset the cost of setting up the loan. The other major payment mortgage managers receive is a management fee, paid by the home loan provider for the service on ongoing management of their portfolio. Mortgage managers are therefore financially independent of the borrower,” the website said.
One advantage of this set-up, Future Financial pointed out, is that “mortgage managers serve a higher fidelity to the needs of the borrower – not to the money they’ve borrowed. A mortgage manager is more interested in providing a borrower with high-quality customer service and assisting them in getting their loan paid off the right way.”
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