Mortgage Brokers Key Terms

Learn more about the job of mortgage brokers

By Terri Deno

Mortgage brokers are the link between those who want to sell a property and those who want to buy a property. A mortgage lender must determine whether the buyer qualifies for any type of loan that covers the amount of the asking price on the property. A mortgage broker works with the buyer to get the best interest rate and payment terms over a 20- or 30-year term. Mortgage brokers can also work out deals for companies and individuals to access the equity in the property.

National Association of Mortgage Brokers (NAMB)

The National Association of Mortgage Brokers is an industry organization for mortgage brokers. The organization offers a variety of services, including certification programs for promoting and maintaining a national code of ethics.
Try: The National Association of Mortgage Brokers offers more information for mortgage brokers on education and certification from NAMB on its Web site.

Mortgage broker license

A mortgage broker license is a license that allows brokers to practice in a particular state. Obtaining a license is subject to the rules and requirements of the state where a mortgage broker wants to work.
Try: All states have requirements for obtaining a mortgage broker license, just like the Colorado Department of Regulatory Agencies outlines on its Web site.

Nationwide Mortgage Licensing System (NMLS)

The Nationwide Mortgage Licensing System is a system created by the mortgage industry to organize licensing information for mortgage brokers. This way, information on all brokers and where they are licensed can be accessed by state regulators.
Try: The Nationwide Mortgage Licensing System offers information for state regulatory agencies and mortgage brokers about registering in the NMLS system.

Certified mortgage specialist (CMS), certified mortgage planning specialist

A certified mortgage specialist is a mortgage broker that has had additional training in one or more areas of mortgage lending.
Try: The Indiana Association of Mortgage Brokers provides information on different types of mortgage specialization and how a mortgage broker can earn these professional designations.

Surety bond

A surety bond is a contract that works with three parties to guarantee payment on a debt in the case of default. One party agrees to pay the obligated amount, a second party is responsible if the first party fails to pay, and the third party is the party collecting the debt. All brokers need to have some type of surety bond to practice in most states.
Try: JW Surety Bond Consultants offers information on how bond rates are determined for mortgage brokers.

Mortgage leads

Mortgage leads are consumers that can be potential clients for the mortgage broker. Mortgage leads is a term also used to describe the mortgage broker options for a consumer looking to find the best deal.
Try: Mortgage News Daily offers an explanation on mortgage leads and how these leads work to find the best deals.