What is a mortgage manager?

Mortgage Managers are mortgage specialists who organize funding for home buyers and property investors (residential, commercial, industrial, retail) from a variety of funding sources.

The Mortgage Manager is responsible for arranging the funds for your loan and the ongoing, prudent management through each phase of your loan�s life � from credit assessment to the monitoring of loan repayments, insurance renewals, interest rate adjustments and loan variations.

Are Mortgage Managers safe?

Yes. Mortgage Managers do not lend their own money for home or investment loans � they source their funds from elsewhere � and this has significant benefits.

Mortgage Managers do not accept deposits. They are not banks.

Mortgage Managers arrange home and investment loans using funds from sources such as unit trusts, superannuation funds, securitised funds and even the banking sector itself. Indeed, banks without well-developed and costly branch networks are a common source of the funds used by Mortgage Managers, who then pass on their competitive rates to home buyers.

Who is responsible for the mortgage?

The owner of the mortgage is not the Mortgage Manager but the original provider of the funds, who works through a trustee.

The trustee�s job is to ensure your mortgage is properly and professionally managed on a day-to-day basis by the Mortgage Manager.

If your Mortgage Manager ceased trading, the trustee would simply appoint another Mortgage Manager and your mortgage would carry on as before, but �under new management�.

Mortgage Managers have brought strong competition to the home loan market and are subject to competitive pressures, ensuring they offer attractive interest rates and personal service.

How does a Mortgage Manager get paid?

Mortgage Managers receive payments from two main sources � application fees which help offset the cost of establishing your loan, and management fees paid by the providers of the funds for the ongoing management of the loan portfolio on their behalf.

What is the difference between a mortgage/finance broker and a Mortgage Manager?

A mortgage/finance broker introduces a borrower to a lender but has no ongoing involvement with the mortgage. The Mortgage Manager is responsible for the mortgage from the time it is provided by the funding institution until the borrower�s payment of thefinal installment of the loan.

_{Source: MFAA}