Mortgage Broker and Mortgage Banker

Either a mortgage broker or a loan officer can work with you when you need a mortgage loan. Since both produce the same outcome (a new home), it's common to confuse the two job types. Yet understanding the ways they differ will be beneficial to the mortgage loan process.

What is a Mortgage Broker?

A mortgage broker is someone or company that is an independent agent for both the mortgage loan borrower 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 a 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 a private investor. You use a mortgage broker to analyze your financial circumstance and find the lender who has the best loan program for you. From application to closing, your mortgage broker facilitates the loan process: offering your loan application to a number of lenders, and walking you with the chosen lender through to the closing of your loan. The broker is given a commission from the borrower at closing.

What is a Loan Officer?

Loan officers represent a particular lending institution (such as a bank) who promote and process mortgages and other loan products for their place of employment alone. They may have the ability to market loans to fit many different situations, but all the loans will be products from the same lender.

A mortgage banker will represent you to the bank or other lending institution. The borrower is helped through the entire process, from finding the loan to closing, by the mortgage banker. Lenders compensate the mortgage bankers with a salary or commission.

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