Comparing Mortgage Brokers to Mortgage Bankers
Mortgage brokers are liaisons between people wanting to buy property and the mortgage bankers who offer loans to purchase property. Brokers help people who want to buy a home or business fill out paperwork and find financing for their endeavors. Mortgage bankers represent financing institutions and are in charge of loaning money to people for homes and businesses. Below is a comparison of these two careers and some outlook information as well.
|Job Title||Education Requirements||Median Salary* (2022)||Job Growth** (2020-2030)|
|Mortgage Brokers||Bachelor's degree||$58,304||1% (for all loan officers)|
|Mortgage Bankers||Bachelor's degree||$50,000||1% (for all loan officers)|
Sources: *PayScale.com, **U.S. Bureau of Labor Statistics
Responsibilities of Mortgage Brokers vs Mortgage Bankers
Mortgage brokers and mortgage bankers are people whose jobs are to match people with homes, businesses and other properties. Both of these people are middle representatives between a home buyer and the money they need for the mortgage. Brokers, however, work with several clients to find the best deal out there for their loan needs, but may consistently recommend certain institutions. Bankers actually represent the money and take care of everything where a home loan is concerned from application to closing. Since both careers are in the financial industry, getting licensure is an irrefutable requirement before these professionals can enter the field.
Mortgage brokers can be very helpful in preparing people to find a mortgage loan when they are buying a home. Brokers set themselves up as independent representatives to meet with a variety of loan institutions on a borrower's behalf. These men and women could represent ten or twelve lenders and will deal with mortgage bankers. They take a financial history of their clients and work to find the best rates available for what their clients and their credit report can afford. Brokers may act as a buyer's representative in helping with paperwork, collecting documentation, or helping write certain reviews.
Job responsibilities of a mortgage broker include:
- Knowing the loan types available from the companies they may frequently work with
- Collecting from borrower any information necessary for loan applications
- Facilitating information exchange between financial institution and borrower
- Making sure to be available to borrower during off hours
Mortgage bankers must keep up with the latest lending products offered by the institutions they represent. The mortgage banker works directly for financial companies and deals directly with borrowers and the loan company. Bankers can actually work to pre-qualify clients before going too far into the loan process. Mortgage bankers normally are direct lenders. They secure the money for a loan and depend on underwriters to complete the process. Once the loan closes, many bankers sell the loan to a secondary market, but still have responsibilities to the borrower.
Job responsibilities of a mortgage banker include:
- Discussing strategies with borrowers
- Maintaining good contact between borrowers and lenders
- Establishing business relationships with real estate agents, builders and others
- Contacting prospective buyers or referrals
Real estate brokers, like mortgage brokers, are agents who work to put prospective homeowners into a house by listing available properties and showing borrowers what homes are available in their price range. Financial examiners make sure a company is meeting and following the law; they check the books and look closely at risky loans similar to mortgage bankers making sure a borrower can afford the loan for a home he or she wants.