National Association of Mortgage Brokers (NAMB)

What it is:

The National Association of Mortgage Brokers (NAMB) is an industry trade group representing mortgage brokers.

How it works/Example:

Founded in 1973, the NAMB's primary objective is to promote ethics and professionalism among mortgage brokers. Most notably, the NAMB requires members to adhere to a professional code of ethics. The group also offers professional education and certification programs, as well as other benefits to help mortgage brokers work more productively. NAMB also lobbies on behalf of the mortgage broker industry.

The NAMB has a local trade association in every state and the District of Columbia.

NAMB administers the GMA®, CRMS® and CMC® certification exams and it maintains a consumer education and fraud-reporting program, available on its website: NAMB.org.

Why it Matters:

Mortgage lending has a huge influence on housing demand, which affects the construction and many other industries. Accordingly, mortgage brokers -- the people who help people find mortgages -- play a significant role in a significant sector of the economy.

Best execution refers to the imperative that a broker, market maker, or other agent acting on behalf of an investor is obligated to execute the investor's order in a way that is most advantageous to the investor rather than the agent.