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. It's understandable to confuse the two job types as both will give the same outcome: a new home. However, understanding how they are different is helpful to the mortgage process.

What is a Mortgage Broker?

A mortgage broker (either a firm or an individual) 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 bank, trust company, credit union, mortgage corporation, finance company or even an individual 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. A mortgage broker will analyze your finances to find out which lender is the best fit for your loan needs. From application to closing, your mortgage broker facilitates the loan process: offering your mortgage application to a number of lenders, and coordinating the process with the lender through to closing. The broker gets a commission from the borrower upon closing.

Mortgage Bankers

Mortgage Bankers represent a specific lending institution (such as a bank) who work with mortgages and other loans for their place of employment alone. Although a loan officer may market quite a range of loans, they are all products of that lender alone.

Your loan officer will represent you to the bank or other lending institution. From choosing a loan program to closing, a loan officer can guide a borrower through the process. Lenders compensate the loan officers with a commission or salary.

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