Ed's Blog

In this topsy turvy real estate market, it’s crucial that the broker you select to help you with your home financing is equipped to handle all of the challenges this market presents. To make sure you’re working with a broker who will provide you with the service you need and deserve, consider asking them these questions before you decide to work with them.

1. Do You Subscribe to a Code of Ethics?

Until more stringent laws are enacted, in many states such as California, most loan originators have no legal obligation to work in the best interests of their clients.. On the other hand, licensed mortgage brokers involved in organizations such as the California Association of Mortgage Brokers (CAMB) or the National Association of Mortgage Brokers (NAMB) willingly agree to abide by a code of ethics. In particular this code of ethics includes a promise to act with fiduciary duty to ensure the best interest of clients at all times.

2. Have You Won any Industry Recognition or Awards?

If you ask a potential broker if they’ve won any industry recognition or awards, and they reply “No,” that doesn’t mean that you should automatically rule them out. Perhaps they’ve never responded to any call for entries for various awards.

On the other hand, if you ask a potential broker if they’ve been recognized in their industry, and they respond that they in fact, were nominated by clients or colleagues and won “Broker of the Year” or something similar; this is a very good sign. This means that your broker is active in the industry, and has a vested interest in their reputation, and career. Others clearly think highly of them, and it’s likely because they provide exceptional service, and operate with high ethical standards.

3. Do You Participate in Ongoing Education? Are You Required to?

Brokers who are deeply committed to their careers will demonstrate this by keeping up to date with changes in the mortgage industry through ongoing education. After all, no broker can serve their clients with the best possible service without constantly learning more and keeping up to date with industry standards. While membership in some organizations such as CAMB or NAMB will require members to participate in ongoing education, most loan originators aren’t legally required to complete ongoing education. (Thankfully, it looks like this will be changing soon under newly proposed legislation and regulation.)

However, you’ll find that the most successful and longest tenured mortgage brokers will elect to participate in educational courses regularly, as this only stands to help them improve as professionals.