Mortgage Broker vs. Loan Officer

Either a mortgage broker or a mortgage banker can work with you when you work on your application for a mortgage . Because both a mortgage broker and lending officer will help you fund a new home, it's understandable to confuse the two. Yet it is important to understand the difference between them so you have clear expectations of them during the mortgage application process.

Mortgage Brokers

During the mortgage loan process, an individual or group who is an independent agent for both mortgage loan borrower and lender is a mortgage broker. 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 an individual, 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 an individual investor. A mortgage broker will consider your numbers to determine which lender is the right fit for you. You deliver your loan application to your broker, who presents it to various lenders. Your mortgage broker then helps you work with the lender of choice until the loan closes. The broker receives a commission from the borrower upon closing.

Mortgage Bankers

The main difference between a mortgage broker and a mortgage banker is that a loan officer works on behalf of a lending institution (a bank, credit union, or others) to process loans solely originated from the products of that institution. While a loan officer may market quite a variety of loan programs, they will be programs with that particular lender.

A mortgage banker (also called an "account executive" or "loan representative") acts on behalf of the borrower to the lender. From choosing a loan program to closing, a loan officer will help you through the process. Lenders pay their mortgage bankers a commission or salary.