Mortgage Broker and Mortgage Banker

Either a mortgage broker or a loan officer may assist you when you're looking to get a mortgage loan. Because a new home is the outcome of the work of both mortgage broker and mortgage banker, it's common to confuse the two. However, it will be beneficial to know how they differ so you have clear expectations of them as you enter your mortgage process.

About Mortgage Brokers

A mortgage broker is someone or group that works as 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 may be a credit union, bank, trust company, finance company, mortgage corporation or even a private investor. A mortgage broker will look at your financial situation to find out which lender is the right fit for your loan needs. From application to closing, your mortgage broker facilitates the loan process: presenting your mortgage application to several lenders, and coordinating the process with the lender through to the closing of the loan. When the loan closes, the broker's commission comes from the borrower.

About Loan Officers

Lending Institutions (banks, finance companies, and others) employ loan officers to market, and process mortgage loans solely originated by that specific institution. They may have the ability to market loans to fit many different situations, but all the loans are products of the same lender.

Also called a "loan representative" or "account executive," a loan officer acts of behalf of the borrower to the lending institution. A loan officer can help you through the application, processing and closing of the loan. Loan officers are compensated with a commission or salary for their services by their employers.