Why We Love It
$75,170Potential Avg. Salary
8.1%Job Growth Rate
Growing DemandJob Outlook
Deal MakingCareer Attribute
Mortgage brokers serve as a liaison between a borrower and lender for mortgage loans. They earn commissions from the bank for referrals that result in approved loans, but their primary responsibility is to analyze loans and interest rates from multiple lenders to find the best possible loan for borrowers.
What is a Mortgage Broker?
The following job responsibilities are common for individuals in mortgage broker roles:
- Market services within a community to attract new customers
- Review borrower finances, debts, and credit to determine the types of mortgages borrowers qualify for
- Investigate the different mortgage loans available to find the best interest rate and terms
- Assist borrowers with completing paperwork and collecting documents for loan application
- Submit mortgage applications to banks for approval
A Day in the Life
Buying a home can be a stressful event, so some aspiring homeowners turn to mortgage brokers to assist with the mortgage selection and application processes. Mortgage brokers have relationships with banks that allow brokers to submit applications on behalf of borrowers. If the application is approved, the mortgage broker receives a commission for the referral. And while mortgage brokers are typically paid by banks and not clients, assisting clients with the mortgage process is their primary responsibility.
When taking on a new client, the mortgage broker collects documentation and reviews borrower finances, debts, credit scores, and credit histories. In some cases, the mortgage broker may recommend that the borrower perform certain tasks to raise his/her credit score before applying for a mortgage in order to qualify for better loan terms. Once the borrower’s finances and credit are all sound, the mortgage broker begins searching mortgage lenders for the best possible loan terms for the borrower.
Once the mortgage broker has presented options to clients and agreed on a bank, the mortgage broker assists the borrower with applying for the loan. The mortgage broker collects all forms and documents and submits them to the bank. When the bank needs more information, the mortgage broker collects additional materials from the client and submits those as well. Once the loan has been approved and the client purchases a home, the mortgage broker receives a referral commission from the bank.
Typical Work Schedule
Mortgage brokers have a flexible working schedule that usually depends on closing the deal with the client rather than specific working hours. While many loan officers usually work in offices, mortgage brokers on the other hand often work outside the office because they have to meet clients at their homes or businesses. Mortgage brokers usually work with multiple clients at the same time and can only be paid once the loan closes which forces them to work with each borrower on a more personal level as well as to connect with multiple lenders. All of this can be time consuming and often requires working on evenings and weekends to be able to meet the client’s requirements. Accordingly, this job should not be your choice if you are looking for life-work balance but it still a financially rewarding career.
Projected job growth
There are currently more than 53,000 mortgage brokerage companies in the US employing more than 418,000 brokers. According to the US Bureau of Labor Statistics, the demand for various loan officers and brokers including mortgage brokers is expected to increase by 3% between 2019 to 2029. This is about as fast as the average growth for all other occupations. The job of the brokers will continuously be needed to correctly evaluate the creditworthiness of various applicants and to determine the likelihood that loans will be paid back in full and on time. In order to have better job opportunities and to advance in your career, you should have enough experience with lending, banking, and sales. In addition, some firms require brokers to find their own clients and even the lenders so having established contacts and a referral network to work with should increase your chances and give you an edge over the competition.
For a mortgage broker, the best working environment may be to work independently which will provide you with better profits, however this requires you having enough experience as well as an effective network to function properly. Therefore, some mortgage brokers prefer to work for larger mortgage brokerage firms as Wells Fargo, Quicken Loans, JPMorgan Chase and Bank of America. They can start working there to gain experience and build networks before moving on to independent business.
How To Become a Mortgage Broker
Aspiring mortgage brokers need some education to become licensed to work in their chosen career field, but the level of education pursued varies. At a minimum, you’ll need to complete 20 hours of education from an accredited institution in order to qualify to take the Mortgage Loan Originator (MLO) licensing exam. Passing the MLO exam is mandatory—you must have this license in order to work as a mortgage broker in any state. Additionally, the license must be renewed every year.
Though a formal degree is not required to work as a mortgage broker, many find that earning a degree is beneficial. For one, the client load for mortgage brokers can fluctuate greatly based on the real estate market, and having a degree can help you secure alternative employment during real estate slumps. Additionally, pursuing a degree in business administration can teach you skills that will be valuable when running your own business, educating you on tax laws, marketing tactics, and banking regulations.
Most aspiring mortgage brokers receive their training on the job working as a loan officer for a bank. Working for a single bank for a few years before venturing out on your own as a mortgage broker can provide valuable experience you’ll use every day when running your own business. This time can be used to help you form a greater understanding of the inner-workings of banks during the mortgage approval process, and can help you better learn what banks look for when considering applications.
Mortgage Broker Salary Data
We’ve provided you the following to learn more about this career. The salary and growth data on this page comes from recently published Bureau of Labor Statistics data while the recommendations and editorial content are based on our research.
National Anual Salary
National Hourly Wage
How do Mortgage Broker salaries stack up to other jobs across the country? Based on the latest jobs data nationwide, Mortgage Broker's can make an average annual salary of $75,170, or $36 per hour. On the lower end, they can make $44,740 or $22 per hour, perhaps when just starting out or based on the state you live in.
Salary Rankings And Facts
#165 Nationally for All Careers
Above Average Salary Nationally
Highest Education Among Mortgage Brokers
- 1.1% Doctorate
- 9.7% Masters
- 41.4% Bachelors
- 9.5% Associates
- 24.3% College
- 13.3% High School
- 0.6% Less than High School
Job Growth Projections and Forecast
2014 Total Jobs303,200
2024 Est. Jobs327,700
Job Growth Rate8.1%
Est. New Jobs24,500
How does Mortgage Broker job growth stack up to other jobs across the country? By 2024, there will be a change of 24,500 jobs for a total of 327,700 people employed in the career nationwide. This is a 8.1% change in growth over the next ten years, giving the career a growth rate nationwide of Above Average.
Growth Rankings And Facts
#276 Nationally for All Careers
Above Avg. Growth Nationally
What Companies Employ The Most Mortgage Brokers
|Industry||Current Jobs||New Jobs Needed||% Increase|
|Depository credit intermediation||132,900||8,400||8%|
|Other nondepository credit intermediation, including real estate credit and consumer lending||76,800||7,500||8%|
|Activities related to credit intermediation||31,000||5,500||6%|