Mortgage Broker and Loan Officer

Either a mortgage broker or a loan officer can help you when you work on your application for a mortgage loan. Since a new home is the outcome of the work of both mortgage broker and mortgage banker, people frequently confuse the two. However, it will be beneficial to understand the ways they differ so you have clear expectations of them during the mortgage process.

Mortgage Brokers

A mortgage broker is someone or company that is an independent agent for both the mortgage loan borrower and the lender. A mortgage broker coordinates 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 investor. A mortgage broker can look at your numbers to determine which lender is the best fit for you. You deliver your mortgage application to your broker, who offers it to several lenders. Your mortgage broker then helps you work with the lender chosen until closing. When the loan closes, the broker's commission comes from the borrower.

About Loan Officers

The biggest difference between a mortgage broker and a mortgage banker is that the latter is employed by a lending institution (a bank, credit union, or others) to market and process loans only from that institution. Although a mortgage banker may offer quite a variety of loans, they all are programs with that specific lender.

Also called a "loan representative" or "account executive," a loan officer represents the borrower to the lending institution. A loan officer can help the borrower through the application, processing and loan closing. Either a salary or commission is given to mortgage brokers by their employers.

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