When looking for a mortgage broker, you want one who's upfront about his fees. (Photo: IStockphoto)
Mortgage brokers have gotten a bad rep, thanks to the millions of homeowners who are facing foreclosure -- some of whom took out loans they didn't understand or ones they couldn't afford, some upon the advice of their brokers. (For more on our country's foreclosure mess and advice for homeowners struggling with their home loans, see Cyberhomes' special report, "Facing Foreclosures.")
Of course, not all mortgage brokers are bad -- a broker can help sort through the staggering number of loan offerings available. And while there are resources on the Web to help consumers sort through loan options and research interest rates, some borrowers may want to get the help of a mortgage broker -- whose job is to know current rates and loan programs.
Web resources
For people who worry about finding a reputable broker (e.g., one who won't steer you into a loan with hidden exorbitant fees so he can collect higher compensation), there's a website you can try.
Upfrontmortgagebrokers.com , the website for the Upfront Mortgage Association, provides a list of brokers who have agreed to give consumers prior notice in writing of their fees, the size of their compensation, and from where they receive their compensation.
Consumers can search for brokers by state. The search might not pull up a lot of brokers -- a search under "New Jersey" only pulled up three brokers from the state -- but at least it's a start.
How-to guide
If you'd like more tips on how to find a good mortgage broker, there's a helpful "New York Times" article on Upfrontmortgagebrokers.com that you can check out: "When to Use a Mortgage Broker."
The Mortgage Professor website offers a useful guide, too: "How to Deal with a UMB" (a UMB is a upfront mortgage broker).—Lauren Baier Kim