Lender

What makes a good Lender? It could be a person at the bank who gives you good service. It could be a mortgage broker or a family member. A Lender can provide money for all sorts of things like cars, homes, holidays, or even a business. It just depends on what you are looking for. It is suggested that you should only lend money if you are buying an asset and buy with cash if you are buying a liability. A liability is considered something that takes money out of your pocket.

In the United States there is a national association that represents the mortgage broking industry called the National Association of Mortgage Brokers (NAMB).  It has around 27,000 members across the United States. A mortgage broker under NAMB is bound by a code of ethics that includes disclosure of financial interest. This will regulate them as a Lender.

The Mortgage Bankers Association (MBA) is a national association representing the real estate finance industry. MBA aims to promote fair and ethical lending practices. They provide a wide range of educational programs and publications to ensure that members are kept up to date.  There are over 2,400 member companies in the MBA, this includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, life insurance companies and others in the mortgage lending field.

In 2004 there were around 53,000 Mortgage Broking companies in the US, employing more than 418,700 people. Mortgage brokers write around 68% of all Home Loans. This percentage has been increasing steadily in the US and in most countries around the world. As the Mortgage Broking industry becomes more regulated it should become better for everyone buying a home or investment property, and also for the mortgage broker who is working for you and for the world economy in general. Someone who has your best interest in mind is a good Lender and will be doing the best for your Retirement Plan.