Genworth Financial

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Posted by motoman 03/03/2009 @ 15:12

Tags : genworth financial, insurance, business

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Land rent scheme too risky for insurer: Opposition - ABC Online
The Opposition says Genworth Financial has refused to support the land rent scheme. (ABC News) The Opposition says fresh doubt has been cast on the viability of the ACT Government's land rent scheme. The scheme aims to help first homebuyers to enter...
CORRECT: Genworth Financial Looks For New Sources Of Capital - Wall Street Journal
("Genworth Financial Looks For New Sources Of Capital," published at 11:34 am EDT Friday, misspelled chief executive Michael D. Fraizer's name. A corrected version, with an updated stock price, follows.) By Lavonne Kuykendall Of DOW JONES NEWSWIRES...
Genworth Financial Retires $330 Million of Debt - PR Newswire (press release)
RICHMOND, Va. , May 18 /PRNewswire-FirstCall/ -- Genworth Financial announced today that it has retired half of its remaining 2009 long-term debt obligations and has the balance scheduled for June. The company has repaid in full the remaining...
Genworth Financial (GNW) NewsBite - GNW Downgraded By Bank of America - Market Intelligence Center
Genworth Financial (GNW) was downgraded today by analysts at Bank of America and the stock is now at $4.83, down $0.14 (-2.86%) on volume of 8175560 shares traded. The analysts reduced GNW to Neutral from Buy. Over the last 52 weeks the stock has...
10-Q: GENWORTH FINANCIAL INC - MarketWatch (press release)
Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated...
Genworth Financial Leads Thursday's AMBG as Global Insurance Index ... - Trading Markets (press release)
Leading AM Best's Global Insurance Composite Index (AMBG) were Genworth Financial (+20.24%) and Hartford Financial Services Group (+17.44%). Trailing the list of global insurance stocks were DCAP Group Inc. (-11.69%) and Fuji Fire & Marine Insurance...
Genworth Financial's 'Putts for Charity' raises over £25000 - European Tour
The 2009 Genworth Financial 'Putts for Charity' campaign got off to a fantastic start at the BMW PGA Championship at Wentworth Club – the first week of fundraising – with over £25000 raised for SOS Children's Villages. The glorious weather enjoyed all...
Genworth Financial Announces Results of Annual Meeting - PR Newswire (press release)
Stockholders also approved an amendment to the 2004 Genworth Financial Inc., Omnibus Incentive Plan to permit a one-time, value-for-value equity exchange program and ratified the selection of KPMG LLP as the company's independent auditor for 2009....
Genworth Financial, Inc. Q1 2009 Earnings Call Transcript - BNET
My first question concerns your relationship with your distributors and in general the perception of third parties. It's encouraging to see that the lapse rate did not change in your fixed annuity business; that is encouraging, but in this difficult...
US Bonds, Stocks Rebound; Weak Housing -
Genworth Financial led gainers in the S&P 500 index with a surge of 9.7% followed by gains in Cigna Corp of 7.7%, in Aflac Inc of 7.5%, in Torchmark Corp of 7.5%, in AES Corp of 7.2% and in CME Group Inc of 7.1%. Mexico Bolsa Index increased 151.43 or...

First Colony Life Insurance Company

Founded by Edwin Horner in 1955, First Colony Life (FCL) grew from a local term life insurance company in Lynchburg, Virginia, specializing in impaired risk underwriting into a national provider of life insurance and annuity products. First Colony Life was one of the first life insurance companies to market term life insurance products through the fledgling independent brokerage general agency (BGA) distribution model instead of relying upon a captive career sales force.

Beginning in 1996 under GE Capital’s ownership, First Colony Life experienced accelerated growth and expansion. Employment nearly doubled from 800 employees in 1996 to more than 1,500 employees in 1999, including more than 750 employees at a new separate Customer Service Center facility in Lynchburg.

BGA distribution continued as First Colony Life’s primary life insurance and annuity sales channel with a sales force of more than 135,000 independent life insurance agents and brokers.

On January 1, 2007, First Colony Life Insurance Company merged into Genworth Life and Annuity Insurance Company, a Genworth Financial company.

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Genworth Financial


Genworth Financial is an international financial services organization that offers a portfolio of primarily consumer-focused products through its various companies, including annuities, combination products, investment services, life insurance, long term care insurance, medicare supplement insurance, mortgage insurance, and payment protection insurance. Genworth Financial is headquartered in Richmond, Virginia, and employs over 6,300 people in 25 different countries.

Through a holistic combination of volunteerism, collaborations with community partners, and charitable contributions, Genworth Financial supports efforts that enhance the quality of life in the communities where it maintains offices.

Established in 2005, the Genworth Foundation is dedicated to providing funds and volunteers, solving individual problems, and building stronger communities. The Foundation focuses its funding efforts to ensure the following community priorities are addressed: Supporting access to basic needs, enriching senior's lives, providing educational opportunities for at-risk youth.

Genworth Volunteers is a global organization made up of employees and retirees. It directly supports the philanthropic efforts of Genworth Financial and the Genworth Foundation.

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Wendy Boglioli

Wendy Lansbach Boglioli (born March 6, 1955) is a former Olympic swimmer and swimming coach from the United States, who later became an executive and motivational speaker. She grew up in Land O' Lakes, Wisconsin.

She is best known for winning the bronze medal in the 100m butterfly and, together with teammates Shirley Babashoff, Kim Peyton, and Jill Sterkel, the gold medal in the 4x100m freestyle relay at the 1976 Montréal Olympics. The gold was particularly crucial to the U.S. women's team as it was the only gold medal awarded to them during the games.

Wendy served as co-head coach of the Yale University Swim Team together with her husband Bernie Boglioli, before embarking on a career as a motivational speaker and spokesperson.

In 1997, she entered the long-term care insurance field, and currently serves as national spokeswoman for Genworth Financial's Long Term Care Division. Her In the Arms of Women initiative is the first of its kind in the industry to recognize the distinctive needs of women clients.

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Delta Sigma Theta

Twenty-two founders of Delta Sigma Theta in 1913

Delta Sigma Theta (ΔΣΘ) is a non-profit Greek-lettered sorority of college-educated women who perform public service and place emphasis on the African American community. Delta Sigma Theta was founded on January 13, 1913, at Howard University by twenty-two young women. Today, Delta Sigma Theta Sorority is the largest African-American Greek-lettered sorority in the world. Membership in Delta Sigma Theta is open to any woman who meets the membership requirements, regardless of race, nationality, or religion. Women may join through undergraduate chapters at a college or university, or after acquiring a college degree through a graduate chapter.

The Grand Chapter has a membership of more than 250,000 predominantly African American college-educated women,but also consist of educated Caucasian, Asian, Native American, Hispanic, and African women. The sorority currently has 950-plus alumnae and collegiate chapters located in the United States, England, Japan (Tokyo and Okinawa), Germany, Bermuda, the Bahamas, Seoul, Saint Thomas and Saint Croix, U.S. Virgin Islands; Haiti and Jamaica.

Delta Sigma Theta is a member of multiple organizations, including the National Pan-Hellenic Council (NPHC) — an organization of nine international Greek-letter sororities and fraternities - as well as the NAACP, and the National Council of Negro Women (NCNW). The current national president is Cynthia M. A. Butler-McIntyre.

The undergraduate members wanted to establish a national organization, enlarge the scope of activities of the sorority, change the sorority's name and symbols, and be more politically oriented. However, conflict arose between one alumnae member who wished to keep the previous name and the remaining collegiate members who voted to change the name to Delta Sigma Theta Sorority. When Nellie Quander heard about changing the sorority name, she disagreed and gave the other women a deadline to stop the efforts to reorganize the sorority. However, the twenty-two declined and unanimously voted to reorganize. Thus Delta Sigma Theta was founded on January 13, 1913, by the twenty-two former members of Alpha Kappa Alpha Sorority. The sorority was officially incorporated, on February 18, 1913.

Less than two months after the sorority's founding, the first public service act of Delta Sigma Theta took place during the 1913 Women's Suffrage March on Pennsylvania Avenue in Washington, D.C. Delta Sigma Theta's twenty-two founders marched with honorary member Mary Church Terrell under the Delta Sigma Theta Sorority banner on the day prior to Woodrow Wilson's inauguration. They felt that black women needed the right to vote to protect themselves against sexual exploitation, promote quality education, assist in the work force, and racial empowerment.

The sorority expanded with a second chapter, Beta Chapter, established at Wilberforce University, February 5, 1914. The third chapter, Gamma Chapter, was established in 1918 at the University of Pennsylvania. Soon after, Delta Chapter was established (April 4, 1919) at the University of Iowa and Epsilon Chapter at Ohio State University (November 19, 1919). The first graduate chapters were authorized in 1920 at the Second National Convention for graduate members in New York City and Washington, D.C. The founding of the Kappa Chapter at the University of California in February 1921, allowed the sorority to become the first Black Greek-letter organization established on the Pacific Coast. In 1930, the Grand Chapter of Delta Sigma Theta Sorority was incorporated.

JabberwockTM, an annual variety show consisting of cultural expression and talent - such as music, skits, and dance - was initiated by Marion Conover-Hope in 1925 in Boston, Massachusetts. Locally produced Jabberwock shows served as fundraisers for many chapters of the sorority. Funds from the programs support scholarships given to youths and other public service projects. The program encourages and assists in the development of young individual talents. On December 28, 1947, the Delta Jabberwock was formally adopted and copyrighted by Delta Sigma Theta.

May Week was created at the second national convention in 1920, at Wilberforce University and was observed by local chapters beginning in 1921. The purpose of May Week is to emphasize the importance of higher education in the community, especially for Black women. The slogan "Invest in Education" was adopted, and a week in May is set aside for programs highlighting academic and professional achievement.

The sorority's first nationwide effort to provide library services in the rural South was the National Library Project, which was authorized in 1937. It was implemented in 1945, with the goal of establishing a traveling library in the South where library services were not available for Blacks. The project arose from concerns that few adequate resources were available, outside of those provided by segregated school systems. In 1939, only 94 out of 774 public libraries in the South served Southern /Blacks. Additionally, only 5% of rural Blacks had access to any public institution at all. The first traveling library was based in Franklin County, North Carolina, where 25 book baskets, with 35 books, were circulated.

The Job Analysis and Opportunity Project began in 1941 for black women to emphasize career, employment counseling, and job exposure. The program was formed to address the concerns that Black women were limited in their choice of occupation, and that they lacked training because of the economy and World War II. Some of the project's goals were to improve working conditions and to improve Black women's opportunities in acquiring a job. Delta Sigma Theta Sorority began a four-point approach to address these concerns, including: fact-finding; counseling workers on problem solving; providing guidance and encouragement; and assisting in changing public perception on working African-American women.

Many notable Delta women are recognized as leaders in community activism, athletics, business, education and scholarship, entertainment, media and literature, as well as in government. Members excel in these roles at the local, national and international level. Many Delta members continue to be active in alumnae chapters after graduating from college. Often alumnae and undergraduate chapters will work in collaboration on large projects that affect their community.

In 1954, Delta Sigma Theta was the first African-American organization to purchase a national headquarters site, which is located in Washington, D.C. The sorority owns sites near the Dupont Circle, which is located at 1703, 1705, 1707, and 1709 New Hampshire Avenue, N.W. In addition to serving as the national headquarters, the buildings house the Delta Research and Education Foundation (DREF), national staff and records, and equipment systems necessary to conduct Delta Sigma Theta's business.

In 1925, the sorority began to organize into geographical regions, based on the chapter's location in the United States or abroad. Initially, four regions were created: Eastern, Midwest, Far West, and Southern. Seven years later, the Central Region was established, and, in 1960, the Mid-Atlantic region was created. Therefore, North and South Carolina left the Southern Region to become part of the new South Atlantic Region.

Each of the seven regions is led by a regional director and a collegiate regional representative who provides a voice for the sorority's college-based members.

Delta Sigma Theta has provided assistance to address the challenges faced by those in communities in the United States and internationally as well. Over the years, the sorority has established programs to provide and improve education, health care, international development, and the strengthening the African American family. Delta Sigma Theta provides public service initiatives through the Five-Point Program Thrust.

Each program's development and implementation operates cooperatively, coordinated by committees, the national executive board, and national headquarters staff. Leaders belonging to the Program Planning and Development Committee, Social Action Commission, Commission on Arts and Letters, Information and Communications Committee, Membership Services Committee and Regional Officers also participate in developing programming to meet the Five-Point Thrust.

In 2003, the "Delta Challenge: DST Homeownership Initiative" was created to assist sorority members, family, friends, and the general public with owning their homes and investing in homeownership. The program is a resource for individuals seeking information about homeownership; wishing to locate a loan representatives who partners with the Delta Challenge; information about mortgage insurance or other benefits; or who has questions regarding real estate or related financial topics. In three years, the program has helped more than 400 families purchase homes. The DST Homeownership Initiative is a partnership between Delta Sigma Theta's 950 chapters, Chase Bank, and Genworth Financial.

The national directors of the DST Homeownership Initiative are Lori Jones Gibson and Lynn Richardson. Gibson is the Genworth Financial's Vice-President of Affordable Housing and Industry Affairs, and Richardson is Chase Bank's Vice President of National Strategic Partnerships.

The Delta Challenge offers mortgage loans, insurance, and other home buyers' discounts through The Delta Chase Initiative. The Delta Chase Initiative resulted in more than 100,000 consumer touch points worldwide and $35 million in closings for Chase, a staggering 389% increase over those closed over the previous three years.

Delta Sigma Theta was the first national African-American organization to collaborate with Habitat for Humanity International in 1992, during Delta President Bertha Roddey's administration. Habitat for Humanity builds and rehabilitates homes with the help of selected homeowners, volunteer labor, management expertise, and tax-deductible donations of money and materials. Houses are sold to families without profit, and no-interest mortgages are issued over a fixed period. Between 1992-1994, Delta Sigma Theta and Habitat for Humanity built twenty-two homes throughout the United States. In 1996, sorority members and supporters traveled to Ghana, where they built forty Delta Habitat for Humanity homes.

Financial Fortitude was designed to help sorority members and local communities to attain personal wealth and financial security. Financial Fortitude was established as a result of increasing unemployment, Social Security debts, and the widening gap between wealth and poverty. Financial Fortitude helps participants to set and define goals, to develop a financial plan to achieve goals, and to put their plan into action. Workshops are focused on topics, such as debt management and reduction, retirement, financing for college, investing, insurance, estate and home ownership, savings, and entrepreneurship.

In 1979, Delta Sigma Theta's Washington D.C. Alumnae Chapter and Delta's Housing Corporation planned and constructed Delta Towers as a multi-million dollar, ten-story building. Delta Towers opened for occupancy in 1980. Delta Sigma Theta established Delta Towers in the northeast area of Washington, D.C. Delta Towers is an apartment building for elderly and disabled individuals. Delta Towers was the first retirement center founded by any of the African-American sororities or fraternities in the United States. Delta Towers currently has 150 independent living residential apartments. Because of the success of Delta Towers, a second development—Delta Towers II—is undergoing construction near the original Delta Towers.

The Washington D.C. Alumnae Chapter's Delta Housing Corporation is planning to construct Delta Towers II. Delta Towers II will provide 150 additional safe and affordable apartments for low to moderate income senior citizens. Delta Towers II will be designed to provide a senior citizen wellness center, ground level commercial office and retail services, and a community room. Together, Delta Towers I and Delta Towers II will offer 300 affordable apartments for senior housing (affordable to households earning 60% or less of the area's median income). Construction on Delta Towers II is scheduled to begin in March 2009.

Dr. Betty Shabazz's Delta Academy ("Catching the Dreams of Tomorrow, Preparing Young Women For the 21st Century") is designed for girls ages 11 to 14, who have an interest in developing leadership skills. The program is named in honor of sorority member, the late Dr. Betty Shabazz, wife of Malcolm X. These girls demonstrate the potential for success, but may not have support systems or access to financial resources. Participants are exposed to math, science, technology, and non-traditional careers. The Delta Academy sessions may also include service learning activities, field trips and book clubs. Delta Academy's symbol is the dream catcher. In Native American culture, the dream catcher possesses power to capture bad dreams and entangles them into a web. Thus, the good dreams pass through the dream hoop's center into the person.

The Delta GEMS framework has five major components (Scholarship, Sisterhood, "Show Me the Money", Service, and Infinitely Complete), which forms a road map for college and career planning. Topics within the five major components provide interactive lessons and activities which allow opportunities for individual growth. Delta GEMS, like Delta Academy, is implemented by Delta Sigma Theta's chapters.

Lawry's Foods partnered with Delta Sigma Theta to create the National Collegiate Public Service Caddy and Grant Recognition Program. The Collegiate Challenge recognizes and rewards a Delta collegiate chapter in each of Delta's regions for the Delta GEMS program's outstanding implementation. Regional winners receive $1,000, and the grand prize winner receives $5,000. In 2006, collegiate chapters were asked to partner with other collegiate chapters, alumnae chapters or community organizations in their municipality.

The Maryland Educational Opportunity Center was established in 1979 and created with a special service grant of $450,000 — the largest grant awarded by the United States Department of Health, Education, and Welfare. MEOC is a free program in Baltimore, MD, which provides information and counseling services to adults and youths interested attending college or vocational/technical school. Having seven outreach centers, the program is sponsored by Delta Sigma Theta and funded by the federal government. The MEOC is a federal TRIO program and one of 130 Educational Opportunity Centers (EOC) in the country. From 1979 to 2006, MEOC has served more than 78,000 individuals. Nearly 20,000 participants were enrolled in postsecondary institutions.

The Total Woman: Mind, Body, and Spirit Lifestyle Change Initiative impacts the well-being of sorority members and members' families and communities at-large. The Lifestyle Change initiative was started in 2004 by the Health Taskforce, providing physical and mental health expertise. Some of the program's goals are to educate on the importance and benefits of lifestyle changes affecting longevity, morbidity, and mortality; to identify organizational alliances that work towards address pertinent health issues; and to develop and implement health-focused programs.

Through the Initiative, the sorority is working to combat the high incidence of women's obesity. The program's first component is a challenge to chapter members to achieve and maintain healthier weights.

In 2006, Delta Sigma Theta Sorority, in collaboration with Dr. Ian Smith and State Farm Insurance, began a partnership, encouraging members to become healthier by exercising and eating properly. Members joined with others in the African-American community to reverse the deadly effects of obesity. At the 2008 National Convention in Orlando, Florida, Delta Sigma Theta Sorority was presented with an award for the most weight lost by any sorority or fraternity.

Heart disease is the leading killer of women and of women of color in the United States. Delta Sigma Theta Sorority was the first sorority to join the American Heart Association's "Go Red for Women" campaign as an organizational alliance working to educate women on heart disease.

In 1989, the National Social Action Commission instituted Delta Days in the Nation's Capitol. Delta Days is an annual legislative conference to increase sorority members' involvement in the national public policy-making process. The annual conference includes legislative briefings, issue forums, and developing advocacy skills. Featured speakers include key policy makers, members of the United States Congress, staff members, and national policy experts.

In 2009, Delta Sigma Theta Sorority will celebrate the twentieth anniversary of Delta Days in the Nation's Capital. The theme will be "Advocacy in Action: Strengthening Our Legacy". Topics will include empowering membership to be effective social action advocates in the areas of quality education, affordable health care, Census 2010, and economic viability. An orientation for first-time attendees providing "how to's" on navigating the legislative process, legislative letter writing, congressional testimony, resolution writing, and coalition building will be provided.

In March 2003, Delta Sigma Theta became a Non-Governmental Organization (NGO) at the United Nations. National President Gwendolyn Boyd accepted the credentials on behalf of the sorority, before 150 UN members from across the world, in a presentation by Hanifa Mezoui, Chief NGO Secretary in the Department of Economic and Social Affairs of the UN (ECOSOC). Delta Sigma Theta was welcomed to the United Nations by Assistant Secretary General for External Affairs, Gillian Sorensen, who advised the sorority, " use your NGO status to monitor the status of women and children in the world and bind together with other NGOs to insure that the UN honors its commitments." Delta Sigma Theta was granted Special Consultative Status as an NGO to the Economic and Social Council of the UN as a result of volunteer services and humanitarian efforts around the world.

Concerns about inadequate prenatal and maternity care for women in Africa prompted Delta Sigma Theta to build the Mary Help of the Sick Mission Hospital. In 1955, Delta Sigma Theta Sorority established a maternity wing and health services in Thika Town, Kenya. Plans for a facility were begun in the early 1960s when the sorority financed the Thika Maternity Hospital's construction, which is now Mary Help of the Sick Mission Hospital. The first hospital opened after Kenya gained independence in 1963. Missionary sisters of the Holy Rosary operate the hospital.

In 1985, Delta Sigma Theta members visited the hospital and witnessed an increased population and an increased infant mortality rate in and around Thika. In response, the sorority donated more than $20,000, which led to the establishment of two additional maternity wards and an administrative office.

Mary Help of the Sick Mission Hospital now has 120 beds, providing affordable prenatal and postnatal care, nutritional education, child immunization, and family planning. The hospital gives prenatal care, including lab work, blood tests, and examinations daily for more than two hundred women. The facility also has a special care nursery for newborn babies. The hospital also serves as a nurse and midwife educational institutions. Over 66 students are trained each year.

In April 2006, Delta Sigma Theta commemorated twenty-five years of providing summit programs with an International Awareness Program: "Summit VI: Health Issues Impacting Women of African Descent". Held in Jamaica, "Summit VI: Health Issues that Impact Women of African Descent" brought awareness to increasing occurrences of diabetes, heart disease and obesity among African-American women. Summit VI featured many health care experts, focusing on health issues primarily affecting African and African-American mothers, daughters, and sisters. The conference included various formats for disseminating information, such as workshops, panels, and town hall formats.

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Mortgage broker

A mortgage broker acts as an intermediary who sells mortgage loans on behalf of individuals or businesses.

Traditionally, banks and other lending institutions have sold their own products. However as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular. Today in most developed mortgage markets (especially in Canada, the U.S., the UK, Australia, New Zealand and Spain) mortgage brokers are the largest sellers of mortgage products for lenders.

The majority of mortgage brokers are regulated to ensure compliance with banking and or finance laws in the jurisdiction of the consumer; however, the extent of the regulation depends on the jurisdiction. Only one state within the U.S. has no laws that govern mortgage lending.

Banks' activities can be divided into retail banking, dealing directly with individuals and small businesses; business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services to High Net Worth Individuals and families; and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profits. Central banks are normally government owned banks, often charged with quasi-regulatory responsibilities, e.g. supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as Lender of last resort in event of a crisis.

The nature and scope of a mortgage broker's activities varies with jurisdiction. For example in the UK anyone offering mortgage brokerage is offering a regulated financial activity; the broker is responsible for ensuring the advice is appropriate for the borrowers' circumstances and is held financially liable if the advice is later shown to be defective. In other jurisdictions the transaction undertaken by the broker may be limited to a sales job: pointing the borrower in the direction of an appropriate lender, no advice given, and a commission collected for the sale.

According to a 2004 study by Wholesale Access Mortgage Research & Consulting, Inc., there are approximately 53,000 mortgage brokerage companies that employ an estimated 418,700 employees and originate 68% of all residential loans in the U.S.. The remaining 32% is retail done through the lender's retail channel, which means the lender does not go through a broker.

The mortgage broker industry is regulated by 10 federal laws, five federal enforcement agencies and over 49 state laws or licensing boards.

The banks have used brokers to outsource the job of finding and qualifying borrowers, and also to outsource some of the liabilities for fraud and foreclosure onto the originators through legal agreements.

During the process of loan origination, the broker gathers and processes paperwork associated with mortgaging real estate.

A mortgage broker works as a conduit between the buyer and the lender, the loan officer typically works directly for the lender. Most states require the mortgage broker to be licensed. States regulate lending practice and licensing, but the rules vary. Most have a license for those who wish to be a "Broker Associate", a "Brokerage Business", and a "Direct Lender".

A mortgage broker is normally registered with the state, and personally liable (punishable by revocation or prison) for fraud for the life of a loan. A loan officer works under the umbrella license of their current institution. Both positions have legal, moral, and professional responsibilities as well as liabilities to prevent fraud and fully disclose loan terms to both consumer and lender.

Typically, a mortgage broker will make more money per loan than a loan officer, but a loan officer can utilize the referral network available from the lending institution to sell more loans. There are mortgage brokers and loan officers at all levels of experience.

A large segment of the mortgage finance industry is commission based. Potential clients can compare a lender's loan terms to those of others through advertisements or internet quotes.

In the 1970s, mortgage brokers did not have access to wholesale markets, unlike traditional bankers. Today, mortgage brokers are more competitive with their access to wholesale capital markets and pricing discounts. A mortgage broker has lower overhead costs compared to large and expensive banking operations because of their small structure. They can lower rates instantly to compete for clients. On the other hand, larger companies are less competitive since they provide their sales representatives their fixed rate sheets. Loan officers often cannot reduce their companies' profit margin and may be higher or lower than the marketplace, depending on the decision of managers. Thus, mortgage brokers have gained between 60 to 70% of the marketplace.

Mortgage brokers can obtain loan approvals from the largest secondary wholesale market lenders in the country. For example, Fannie Mae may issue a loan approval to a client through its mortgage broker, which can then be assigned to any of a number of mortgage bankers on the approved list. The broker will often compare rates for that day. The broker will then assign the loan to a designated licensed lender based on their pricing and closing speed. The lender may close the loan and service the loan. They may either fund it permanently or temporarily with a warehouse line of credit prior to selling it into a larger lending pool.

The difference between the "Broker" and "Banker" is the banker's ability to use a short term credit line (known as a warehouse line) to fund the loan until they can sell the loan to the secondary market. Then, they repay their warehouse lender obtain a profit on the sale of the loan. The borrower will often get a letter notifying them their lender has sold or transferred the loan. Bankers who sell most of their loans and do not actually service them are in some jurisdictions required to notify the client in writing. For example New York State regulations require a non servicing "banker" to disclose the exact percentage of loans actually funded and serviced as opposed to sold/brokered.

Brokers must also disclose Yield spread premium while Bankers do not. This has created an ambiguous and difficult identification of the true cost to obtain a mortgage. The stricter Broker disclosure requirements, especially the Good Faith Estimate, can often create the illusion that they are charging more to obtain the exact same mortgage when compared to a Banker, when in fact they may cost the same or the Brokers offer may even be less costly. This topic has been hotly debated on Capitol Hill and state level judiciary committees.

Sometimes they will sell the loan, but continue to service the loan. Other times, the lender will maintain ownership and sell the rights to service the loan to an outside mortgage service bureau.

Even large companies with a lending license sell, or broker, the mortgage loan transactions they originate and close. A smaller percentage of bankers service and keep their loans than those in past decades. Banks act as a broker due to the increasing size of the loans because few can use depositor's money on mortgage loans. A depositor may request their money back and the lender would need large reserves to refund that money on request. Mortgage bankers do not take deposits and do not find it practical to make loans without a wholesaler in place to purchase them. The required cash of a mortgage banker is only $500,000 in New York. The remainder may be in the form of property assets (an additional $2.00), an additional credit line from another source (an additional $10,000,000). That amount is sufficient to make only two median price home loans. Therefore, mortgage lending is dependent on the secondary market, which includes securitization on Wall Street and other large funds.

The largest secondary market or"wholesale" institutions are Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, commonly referred to as Fannie Mae and Freddie Mac, respectively. Loans must comply with their jointly derived standard application form guidelines so they may become eligible for sale to larger loan servicers or investors. These larger investors could then sell them to Fannie Mae or Freddie Mac to replenish warehouse funds. The goal is to package loan portfolios in conformance with the secondary market to maintain the ability to sell loans for capital. If interest rates drop and the portfolio has a higher average interest rate, the banker can sell the loans at a larger profit based on the difference in the current market rate. Some large lenders will hold their loans until such a gain is possible.

The selling of mortgage loans in the wholesale or secondary market is more common. They provide permanent capital to the borrowers. A "direct lender" may lend directly to a borrower, but can have the loan pre-sold prior to the closing.

Few lenders are comprehensive or "portfolio lenders". That is, few close, keep, and service the mortgage loan. The term is known as portfolio lending, indicating that a loan has been made from funds on deposit or a trust. That type of direct lending is uncommon, and has been declining in usage. An example of a portfolio lender in the USA is ING Direct.

The laws have improved considerably in favor of consumers. A mortgage broker must comply with standards set by law in order to charge a fee to a borrower. The fees must meet an additional threshold, that the combined rate and costs may not exceed a lower percentage, without being deemed a "High Cost Mortgage". An excess would trigger additional disclosures and warnings of risk to a borrower. Further, the mortgage broker would have to be more compliant with regulators. Costs are likely lower due to this regulation.

Mortgage bankers and banks are not subject to this cost reduction act. Because the selling of loans generates most lender fees, servicing the total in most cases exceeds the high cost act. Whereas mortgage brokers now must reduce their fees, a licensed lender is unaffected by the second portion of fee generation. This is due to the delay of selling the servicing until after closing. Therefore, it is considered a secondary market transaction and not subject to the same regulation.

As of 2007, in the United States the federal law and most state laws do not assign a fiduciary duty on mortgage brokers to act in best interests of their customers. An exception is California, where a 1979 ruling of the Supreme Court of California did establish fiduciary duties of mortgage brokers. This means that consumers, in states other than California, may be charged excessive rates and fees and are encouraged to do some shopping around prior to any agreement.

Mortgage fraud is when one or more individuals defraud a financial institution by submitting false information willfully. This is normally to obtain a favorable outcome. Some mortgage brokers have been involved in mortgage fraud according to the FBI.

Predatory mortgage lending is when a dishonest financial institution willfully misleads or deceives the consumer. Some mortgage consultants, processors and executives of mortgage companies have been involved in predatory lending.

Another unethical practice involves inserting hidden clauses in contracts in which a borrower will unknowingly promise to pay the broker or lender to find him or her a mortgage whether or not the mortgage is closed. Though regarded as unethical by the National Association of Mortgage Brokers, this practice is legal in most states. Often a dishonest lender will convince the consumer that he or she is signing an application and nothing else. Often the consumer will not hear again from the lender until after the time expires and then they are forced to pay all costs. Potential borrowers may even be sued without having legal defense.

The laws governing mortgage brokerage in Canada are determined by provincial governments. Throughout Canada, high ratio loans are insured by either the Canada Mortgage and Housing Corporation, Genworth Financial or AIG United Guaranty.

Quebec, like Louisiana, is unique in that its laws are based on the Civil Code. The law permits mortgage brokerage to be performed by those in the finance industry, as well as those in the real estate industry.

Mortgage Brokers have been active in Australia since the early 1980's however they have only become a dominant force in the mortgage industry during the late 1990's on the back of aggressive marketing by Aussie Home Loans & Wizard Home Loans. Approximately 35% of all loans secured by a mortgage in Australia are introduced by mortgage brokers.

Currently there are few federal laws requiring any form of accreditation, licensing or training for mortgage brokers. Despite this the WA state government has introduced their own mortgage broker licensing to protect consumers. Although the other states are largely unregulated the industry has seen some degree of self regulation. This is due to the requirements of lenders for accredited brokers to be members of an industry body such as the Mortgage & Finance Association of Australia (MFAA) and an external dispute resolution provider such as COSL.

Australian mortgage brokers do not usually charge a fee for their services as they are paid by the lenders for introducing loans. They are paid an up front commission that is on average 0.66% of the loan amount and an ongoing trail commission that is on average 0.18% of the loan amount per annum paid monthly. These commissions can vary significantly between different lenders and loan products, especially since the commission re-alignments introduced by Australian banks during June to August 2008 in reaction to the Subprime mortgage crisis.

Although mortgage brokers are paid commissions by the lenders this does not alter the final rate or fees paid by the customer as it may in other countries. Mortgage brokers do not have the ability to charge the customer a higher or lower rate and in return obtain a higher or lower commission.

The mortgage brokerage industry is still new compared to the situation in the U.S.A. and the U.K. Not all of the banks in Singapore are tied up with the mortgage brokerage firms. The mortgage brokers are mostly regulated by the Singapore Law of Agency.

A study undertaken by Chan & Partners Consulting Group (CPCG) shows that the mortgage brokering industry is still largely a new concept to the Singapore financial consumers. However this will set to change as more consumers realize that taking up a housing loan with the mortgage broker does not increase the consumer's cost at all, and can in fact aid them in making a more informed decision.

A separate research by CPCG shows that the fee structure in the mortgage brokerage industry in Singapore is not regulated. This resulted in different kinds of fee structure for different mortgage brokerage companies. The research stated that while mortgage brokers in other parts of the world are largely commission based, some mortgage brokers in Singapore do charge the customers a retainer's fee which can range from SGD$500 to SGD$1000.

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Source : Wikipedia