Tuesday, 13 February 2007

Mortgages - What are they?

Day 1 in the life of a mortgage originator:

Nobody's viewed my first BLOG posting, but HEY that's no surprise. I'm sure I'll have millions tomorrow ;-)

I thought we'd start the first topic off with a good old question:

"What is mortgage origination?"

I'm going to try not bore you as this is most likely a definition pulled straight out of the dictionary, but at least if you find this page and you're anything like any of my mates (sorry guys) you'll have a clue as to what this blogs about.

Mortgage origination is a well established worldwide. Things may differ slightly from country to country depending on the nature of the residential mortgage industry but the concept is pretty much the same.

In South Africa, where the residential mortgage market is dominated by four major institutions, the concept has a very distinct and unique flavour. The industry has been established for some five years now and could equally have been termed mortgage broking. Put simplistically mortgage originators, looks to attract clients requiring finance for a residential property and then placing that business with one of the major financial institutions (This being the banks, ABSA, FNB, NEDBANK, STANDARD BANK. Those institutions would pay the commission to the originators, thus you pay nothing! - What we do forget to mention here, is that you pay for the bond, transfer fee's etc but you get my drift.

It just makes so much sense in using a bond originator. They do all the hard work for you, they get you the best rate and if you have any financial difficulties or bad credit records, that's where they're ultra AWESOME. Banks can be real crappy in these situations...

Well. Let me go do some work. I've been faffing on this BLOG for too many hours and now I'm doing nothing at work all day. Lets hope nobody reads this BLOG right??? ;-)


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