There is a large business conducted by brokers in placing mortgage loans. The broker acts as an intermediary. His services are of value to the borrower who wants the money and the lender who wishes to invest his funds. His work consists in getting applications for loans, putting them into proper shape and then finding lenders both able and willing to make the loans.

There are several things to be considered by a broker in connection with the loan application. First, is it really a desirable loan - that is, is the property of sufficient market value to warrant the loan asked. The owner may have an exaggerated idea of the value of his property and the loan he asks may be more than the broker, from his experience, knows he will be able to place. The broker may have to secure expert appraisals of the property, and may have to try to get the applicant to agree to reduce the amount of his application to a more conservative one based on the appraised value of the property. The broker also considers the type of improvement on the property. Is it a specialty such as a theatre, church or garage? If so he will realize that the proportion of loan to value should be smaller than that of standard properties. He will also consider the places where he will be likely to have his application considered. His sources of funds may include savings banks, title companies, mortgage guarantee companies, life insurance companies, or private investors. He tries to secure the loan at one of these places, but he usually knows in advance where his chances of success are best. Lenders are choosers. They accept the applications they like best. If a broker knows the property which is the subject of an application, knows its value and possibilities, and is himself convinced of the merits of the loan, he ought to be able to make a convincing argument for it to one with funds to invest.