Mortgage Broker and Loan Officer

When you need a mortgage loan, you may work with a mortgage banker or you may choose to work with a mortgage broker. Since both produce the same outcome (a new home), people usually confuse the two job types. Yet knowing how they differ is advantageous to your mortgage process.

Mortgage Brokers

A mortgage broker is an individual or company that is an independent agent for both the mortgage loan borrower and the lender. Your mortgage broker will stand as facilitator between you and the lending institution; which can be a bank, trust company, credit union, mortgage corporation, finance company or even an individual, private investor. A mortgage broker can look at your finances to determine which lender is the best fit for you. Your broker will present your mortgage application to several lenders, and works with the lender of choice until closing. Upon closing, the broker's commission is paid by the borrower.

Mortgage Bankers

The biggest difference between a mortgage broker and a mortgage banker is that the latter works for a lending institution (a bank, credit union, or others) to process loans solely from the programs of that institution. While a mortgage banker may offer quite a variety of loan programs, they are all programs with that particular lender.

A mortgage banker represents you to the bank or other lending institution. The borrower is walked through the whole process, from loan selection to closing, by the loan officer. Mortgage bankers may be compensated with a commission or salary for their work by their employers.