Upfront Mortgage Broker

(redirected from UMB)
Also found in: Dictionary, Thesaurus, Acronyms, Encyclopedia, Wikipedia.

Upfront Mortgage Broker (UMB)

A mortgage broker who sets a fee for services,in writing,at the outset of the transaction and acts as the bor- rower's agent in shopping for the best deal.

Customers of UMBs pay the broker's fee plus wholesale loan prices, which are disclosed at the customer's request. In contrast, other mortgage brokers (MBs) add a markup to the wholesale prices and quote only the resulting “retail prices” to customers. Most MBs reveal their markup only in required disclosures after an application has been submitted.

UMBs credit customers with any rebates they receive from lenders or home sellers that would otherwise increase the broker's fee beyond what was agreed upon. Such rebates are often an added source of revenue to MBs.

Once the UMB's fee has been established, the UMB's interests are largely aligned with those of customers. In contrast, MBs are in a conflict situation with customers.

A list of UMBs, showing their Web site addresses and the states in which they operate, is available on my Web site.

Many brokers who are not listed as UMBs are willing to operate in the same manner with borrowers who understand the value of broker services and won't faint when they hear the fee. Here is a form you can use.

Broker Compensation

The total compensation to [Name of broker], including any rebates from the lender, will be: _____________

A separate processing fee will be: ____________

I developed the UMB program in 2001. At the time of writing, there were 53 UMBs listed on my Web site.

References in periodicals archive ?
UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo.
UMB was one of the first to get involved when HSAs first hit the marketplace more than a decade ago, and are now one of the leading providers of services in the marketplace.
UMB Bank previously was involved in two lawsuits filed against Davis.
UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona.
UMB has been a provider of corporate trust services for more than 60 years and administers more than USD 66bn in debt with more than 6,400 debt and escrow transactions.
Todd Duncan, UMB Bank's executive vice president, Corporate Trust, said, 'However, with the ongoing changes in the capital markets and corporate trust business, UMB's corporate trust service model has gravitated to a regional bank, full service model that requires the support of commercial banking and other traditional banking services, which UMB does not plan to build in the Indianapolis area.
The acquisition is part of UMB's strategy to invest and further boost its wealth management business, Clyde Wendel, vice chairman of UMB Bank, said.
In addition UMB has granted the underwriters a 30-day option to purchase up to an additional 585,000 shares of common stock.
George Schmelzel, senior vice president of UMB Credit Card Services, said, 'Our evaluation and due diligence of 5Star's credit card portfolio uncovered a near mirror image of UMB's credit card programme.
Kansas City continues to thrive thanks to growing and successful small businesses throughout the area," said Kathy Hunter, senior vice president of UMB Small Business Banking.
In his new role, Mathews will be responsible for executing UMB Bank's investment strategy and overseeing the day-to-day management of the bank's investment activities.
UMB Bank, a unit of UMB Financial Corp, has said that it has completed the acquisition of American National Bank in Denver.