Upfront mortgage brokers (UMB) are brokers who charges a broker’s fee plus wholesale loan prices for the services to match a borrower to the best mortgage the borrower qualifies for.
The main difference between UMBs and traditional mortgage brokerages is that they mention the total fees upfront so that the borrower can have the comfort that he will not be fleeced with hidden costs at closing.
While more details regarding fees will be disclosed at the customers’ request, this does not mean that they are cheaper than traditional brokers.
It just means that they state their fees upfront, including the markup details.
As UMBs are only paid the amount of fees they quoted upfront, any rebates received from home sellers and lenders will be credited back to the customer.
This means that should a UMB keep the rebate, they are just pretending to be a UMB instead of acting like one.