Mortgage Broker and Mortgage Banker

Either a mortgage broker or a loan officer can assist you when you need a mortgage loan. As both yield the same result (a new home), it's easy to confuse them. Yet it is helpful to recognize the difference between the two jobs so you have clear expectations of them as you enter the mortgage process.

Mortgage Brokers

A mortgage broker is someone or company that is an independent agent for both the mortgage loan applicant and the lender. A mortgage broker facilitates things for you and your lender, which can be one of the following: a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. Acting as a facilitator between you and your lender, your mortgage broker can match you with a credit union, bank, trust company, finance company, mortgage corporation or even an individual, private investor. You work with a mortgage broker to examine your financial situation and find the lender who has the best loan program for you. From application to closing, your mortgage broker facilitates your loan process: offering your mortgage application to several lenders, and coordinating the process with the lender through to closing. The broker is given a commission from the borrower if the loan closes.

What is a Loan Officer?

The main difference between a mortgage broker and a mortgage banker is that a loan officer works for a lending institution (a bank, credit union, or others) to market and process loans solely from the products of that institution. They may have the ability to offer loans to fit many different situations, but all the loans are programs of the same lender.

A mortgage banker (also called an "account executive" or "loan representative") represents the borrower to the lender. From selecting a loan product to closing, a loan officer will guide you through the process. Lending institutions compensate the mortgage bankers with a commission or salary.