What is an Upfront Mortgage Broker?

An upfront mortgage broker (UMB) is a mortgage broker that is held to higher standards of honesty, transparency, and integrity. UMBs are part of a non-profit society created in 2001 called the Upfront Mortgage Broker Association (UMBA).

Basic Role

Like any mortgage broker, an upfront mortgage broker acts as the intermediary party in a loan negotiation. He or she gets offers from lenders and presents rates to borrowers. The borrowers do not have direct contact with the lenders, instead the broker is the in between. People hire mortgage brokers because brokers have access to more offers and better rates.

Specifics of Being Upfront

The title "upfront" means that this particular type of mortgage broker acts completely on the behalf of the customer. Upfront mortgage brokers present borrowers with the lowest, wholesale home loan rates on the market. On the wholesale market, as opposed to on the retail market, the difference in prices between lenders is smaller. Upfront mortgage brokers declare all of their brokering costs, mark-ups, and processing fees in writing at the beginning of a transaction. Overall, upfront mortgage brokers are explicit, trick-free, regular mortgage brokers.