Mortgage Broker: Job Duties, Career Outlook, and Education Requirements
Research what it takes to become a mortgage broker. Learn about education requirements, job duties, average wages and job outlook to find out if this is the career for you.
What is a Mortgage Broker?
Mortgage brokers are licensed financing professionals. As a mortgage broker, you are in the business of selling real estate properties owned by others to borrowers who want to purchase the property. Your duties include assessing the needs of borrowers and lenders. As part of the decision and signing process, a mortgage broker helps to connect loan-seekers with lenders. This is done in part by collecting information from the prospective homeowner and then matching them with an appropriate lender. The broker also expedites the signing process. The following chart provides an overview of important career considerations for this profession.
|Degree Required||Associate's or bachelor's degree|
|Key Skills||Interpersonal communication, decision making, initiative, organization|
|Licensure and Certification||Licensure required, certification beneficial|
|Job Growth (2018-2028)||8% (for loan officers)*|
|Median Salary (2019)||$56,845**|
Source: *U.S. Bureau of Labor Statistics, **PayScale.com
What Do Mortgage Brokers Do?
As a mortgage broker, it is your responsibility to review borrowers' applications, credit reports and financial information to find the best possible matches. You must balance factors such as the length of the loan repayment schedule, interest rates and monthly payment amounts, depending on each client's financial situation. It's important that you collect a diverse range of information about each borrower and create a file for a lender. You also negotiate the details of the loan between the two parties.
What Is the Career Outlook?
The U.S. Bureau of Labor Statistics (BLS) reported on loan officers, who perform duties that are very similar to that of a mortgage broker. Loan officers are expected to experience average job growth from 2018-2028, with job opportunities growing by 8%. These opportunities are expected to emerge as the economy recovers, resulting in more people looking to purchase homes. The recent housing crisis has seen an increased call for regulatory compliance, which should benefit professionals looking to enter this field.
What Education Requirements Must I Fulfill?
The minimum requirements for becoming a mortgage broker typically include an associate's or bachelor's degree. Your state will require that you become licensed before practicing as a mortgage broker. The Mortgage Loan Originator (MLO) license is an excellent way for brokers to prove their knowledge and experience. Requirements for this license vary by state.
What are Some Related Alternative Careers?
Financial analysts, managers, and examiners are all required to have bachelor degrees and advise different bodies about their financial decisions. Any job in the financial industry will be heavily scrutinized and monitored. The insurance industry is another similar field with roles such as underwriter, sales agent, and broker requiring many of the same skills as a mortgage broker. While responsibilities may seem similar, different licenses and requirements will most likely be necessary for each of these roles depending on the location.