Final answer:
Mortgage brokers don't service loans beyond placement due to a conflict of interest, lack of expertise, regulatory restrictions, and limited resources.
Step-by-step explanation:
Mortgage brokers typically do not service loans beyond their placement due to a combination of factors.
- Conflict of interest: Once a loan is placed, mortgage brokers earn their commission and may not have a financial incentive to service the loan in the long term.
- Lack of expertise: Mortgage brokers specialize in originating and placing loans, and may not have the necessary expertise or resources to effectively service loans over time.
- Regulatory restrictions: Regulations may limit the scope of services that mortgage brokers can offer, excluding loan servicing.
- Limited resources: Mortgage brokers may not have the infrastructure or staff to handle loan servicing, which requires ongoing communication, documentation, and administrative tasks.
Overall, mortgage brokers focus on matching borrowers with suitable loans and facilitating the loan process, but may not be equipped or motivated to provide ongoing loan servicing.