Mortgage and Loan Education

Syndicate content

Become A Mortgage Broker

Written by Dana Hinders
Bookmark and Share

Many people have trouble distinguishing between a mortgage banker and a mortgage broker. A mortgage banker is the lender who is responsible for making the loan. A mortgage broker is the person who helps home buyers find an appropriate lender. A mortgage broker does everything a mortgage banker would do, but offers clients more financing options.

A career in mortgage banking is a good option for people with experience converting leads to sales. Many different types of salespeople have gone on to begin successful careers in mortgage banking. Employers are often willing to train experienced salespeople to become loan officers.

Mortgage brokers make their money on a loan's interest, closing costs, and other fees. Loan officers who work for a mortgage broker are typically paid on a commission basis. Their incomes can fluctuate with changes in federal interest rates, but they can expect to earn up to $90,000 per year.

Licensing Requirements for Mortgage Brokers

Not all states require mortgage brokers to be licensed. Alabama, Alaska, Colorado, Montana, and Wyoming currently have no regulations covering the qualifications of mortgage brokers. Other states require that mortgage brokers pass a written exam, complete a series of professional education courses, obtain a certain amount of related work experience, and/or maintain a surety bond. Many states conduct background checks on applicants to eliminate mortgage brokers who have previously been convicted of fraud or had a license revoked in another state. If you are considering a career as a mortgage broker, remember to check the specific licensing requirements of the state in which you plan to work.

Bookmark and Share