Challenges Hidden in Mortgages Origination

Posted on April 16th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

As full-service firms look to be one-stop shops for wealthy investors, more financial advisers are becoming licensed mortgage loan originators. However, some regulatory gray areas are getting attention.

Mortgage lending has been a top priority for a number of full-service firms in recent years. On top of record low rates last year, sales of high-end homes to wealthy clients have been ticking up this year, and investors benefited from strong performance in the stock market last year.

Even as interest rates have hit record lows and brokers have helped clients refinance or purchase second homes, firms have been placing additional restrictions on what brokers can say and how they are compensated for mortgages. Advisers can face additional hurdles from increased paperwork to negative feedback from frustrated clients if it takes too long to qualify. The process clearly has become more complicated.

If executed properly, mortgage referrals can help build an adviser's practice. That helps to deepen client relationships, obtain additional referrals and bring in more assets. Clients can sometimes qualify for better rates for jumbo mortgages if they have more assets at the firm.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

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