Mortgage brokers seek to match lenders with potential buyers in a manner that ensures both parties benefit. A reputable broker will take steps to ensure that the operation is conducted in the most ethical nature. Part of the process means securing a type of surety bond known as a mortgage broker bond. Here are some of the advantages that come along with those mortgage broker bonds in Edmonton and make them invaluable to all parties concerned.
Inspiring Confidence in the Buyer
One of the benefits that Mortgage Broker in Edmonton bring to the table is the ability to ensure buyers that they will receive the best service that the broker has to offer. The bond serves as evidence that the broker has every intention of honoring all aspects of the agreement between the two parties. In this sense, the bond is not about protecting the mortgage broker. It is about providing protections for the buyer in the unlikely event that something should occur that is not in line with the specifics of the agreement between the broker and the client.
Works in Tandem with the Liability Coverage
While the bond is not designed to protect the broker directly, it does make it easier to deal with situations that would otherwise undermine the operation. Consider what would happen if the broker had a client whose credit and circumstances were a little shaky and there was some doubt about the ability to fulfill the terms of the mortgage. The broker could choose to move forward with the deal anyway. Should the client default on the mortgage, the surety bond would help to cover the lender’s losses.
Keep in mind that the broker would still need to repay the bond issuer for whatever amount is outstanding. In this instance, the liability coverage that the broker has in place would settle the obligation to the bond issuer.
Spend some time to today talking with the team at Sandra Forscutt – Envolve Mortgage Group about these types of bonds, how they work, and what they can do to protect the interests of everyone involved in the mortgage approval process. Understanding what the bond will and will not provide makes it easier to determine the amount of the bond and what other measures the broker should take in order to offer the best services to potential clients.
