What is one thing a Mortgage Broker is prohibited from doing?

A Mortgage Broker is a professional who acts as an intermediary between borrowers and lenders to facilitate the loan application process. However, one critical aspect of their role is that they do not provide direct lending services, which is why making mortgage loans is prohibited for them. Instead, they connect borrowers with lenders who provide the actual loans. This distinction is important because it ensures that mortgage brokers focus on helping clients navigate the lending landscape rather than becoming direct lenders themselves.

In contrast, the other options reflect activities that are within the scope of a mortgage broker’s responsibilities. Advising customers about loan options and terms, negotiating those terms with lenders on behalf of the borrower, and collecting applicable loan fees are all integral parts of a mortgage broker’s function in assisting clients to secure financing for their residential mortgages. Understanding these roles and limitations is crucial for compliance with the New Jersey Residential Mortgage Lending Act, which aims to protect consumers in the mortgage process.