What does a mortgage broker do?
Mortgage brokers act as mediators between clients and lending institutions. They sell mortgage loans and market themselves to attract potential clients. They obtain personal information to make a decision about the client’s financial status. They assess credit history, affordability, and the likelihood of loan repayment. Mortgage brokers are also responsible for assessing the mortgage market to offer the best product to fulfill the client’s needs. They often give clients advice depending on individual circumstances and strive to provide buyers with the best possible deal on a mortgage. Mortgage brokers are different from loan officers in a sense that they seek out finance companies and lending institutions to find money for the client instead of loaning money from their own institution. They are often self-employed or work for brokerage firms.
What kind of training does a mortgage broker need?
Mortgage brokers typically need at least a bachelor degree in economics, finance, or other related field. Employers also value previous banking, brokerage, sales, real estate, or lending experience. Mortgage brokers who do not have formal education can often advance to their current positions after many years of sufficient work experience. Many brokerage firms offer on-the-job training and will sponsor employees for the licensing exam.
In 45 States, mortgage brokers are required to be licensed. The educational requirements usually vary by State. Mortgage brokers are also typically bound a Quality Control standard and are subject to many federal regulations. Many mortgage brokers become members of the National Association of Mortgage Brokers (NAMB). To keep up with their licenses and skills many mortgage brokers complete continuing education and attend seminars and conferences.
What are the prospects for a career as a mortgage broker?
Employment of mortgage brokers is expected to grow about as fast as average for all professions, increasing 11% from 2006 to 2016 (1). The turning around of the housing market and population increase will drive growth.
Job prospects are expected to be favorable and will be the best for mortgage brokers with a college education and related banking, lending, sales, mortgage, and brokerage experience.
How much do mortgage brokers make?
As of July 2009, mortgage brokers with less than 1 year experience made about $24,000 a year. Those with 1 to 4 years of experience made about $37,129 a year and those with 5 to 9 years experience made about $41,554 a year (2).
A career as a mortgage broker is an excellent choice for people who have great people skills and a strong drive to succeed. Perseverance, high motivation, excellent verbal and written communication, organization, and the ability to multitask are also essential qualities.