Mortgage brokers are essential today in securing loans for the purchase of a new home or the refinance of an existing one.

Mortgage brokers are regulated and are required to represent their clients. Mortgage brokers are required to immediately notify applicants if the loan promised cannot be obtained. Mortgage brokers cannot bait and switch loan applicants and have loan applicants at the closing see a different loan program than what they applied for. Borrowers can sue the mortgage broker for consumer fraud and report the transaction to the state regulators.

Also if a Mortgage Broker gives a loan commitment and this loan commitment fails to materialize at the closing, the Mortgage Broker is liable for breach of contract for the damages to the borrower for his inability to close.