What Are the Job Duties of a Mortgage Broker?
Becoming a mortgage broker gives you the power to work between property buyers, sellers, and banks. Knowing key tax and real estate laws are essential, as well as having a license, regardless of what state you work in. Each state varies on their licensing standards, but keep reading to see a sampling of state requirements.
Someone looking to buy a home may enlist the help of a mortgage broker. As a mortgage broker, you would work with the person buying a home, along with a bank to help the buyer obtain a mortgage loan. It's possible you will work with many properties at once, in addition to several banks and buyers at the same time. Other key job duties would include finding appraisers to determine property values, conducting title searches, comparing properties, having knowledge of tax regulations and laws, understanding real estate laws, touring available properties, and managing updated property lists. On occasion, someone who wants to sell a property may enlist your help in the selling of such property.
Important Facts About Mortgage Brokers
|Average Salary (2018)||$78,940 per year (Real Estate Brokers)|
|Job Outlook (2016-2026)||5% growth (Real Estate Brokers)|
|Work Environment||Office setting|
|Similar Occupations||Insurance sales agent, loan officer, real estate appraiser|
Source: U.S. Bureau of Labor Statistics
Depending on a person's strengths and the structure of the mortgage lending process of the employer, a mortgage broker may choose to specialize:
Mortgage Payment Collection
Some individuals may become loan collection officers. The primary responsibility of such officers is to follow up with clients who have failed to make one or more mortgage payments. Those who desire to get back in good standing with the financial institution will work with the loan collection officer to re-structure a payment system that works for their budget. However, collection officers must also initiate collateral collection or foreclosure proceeding for those who continue to miss payments.
Loan underwriters' work is done before a mortgage agreement has been signed. Underwriters' primary job is to determine whether or not a potential client is credit-worthy, including how much they are willing to lend the individual and at what interest rate. Tasks to make this determination include the collection and analysis of a person's financial information and verifying that all of the data provided is accurate.
Education and Licensing
Mortgage brokers need at least a high school education, although some colleges do provide programs on real estate brokering. Regardless of any college degree you may have, the one thing that is required in all 50 states to become a mortgage broker is a license. Each state has different regulations and criteria for obtaining one. Listed below is a sampling of a few states and what their requirements are for obtaining a mortgage broker license.
The state of New York uses an online application system to apply for a mortgage license through the Nationwide Mortgage Licensing System (NMLS). You will be required to submit jurisdiction requirements, which includes:
- Credit Report
- Notarized Statement
- Licensing Fee
- $10,000 Surety Bond
To receive your license through the Indiana Department of Financial Institutions (DFI), you must show this state that you can operate in a fair and honest manner, in addition to having the proper professional experience and training. This is based on a criminal background check, credit check, educational transcripts, passing a written test requirement, meeting surety bond requirements, reviewing license procedures in Indiana and other states, and any other check deemed necessary.
You also need to register with the Nationwide Mortgage Licensing System and Registry (NMLSR) before you can even submit your application to the DFI. You will also need to see what educational requirements must be met before you can obtain your license.
Applications in this state are also submitted online via the NMLSR. Other requirements include:
- You must have a minimum net worth of $50,000
- A bond amount between $50,000 and $150,000
- At least three years of experience in the mortgage industry
- Provide a financial statement
- Pay license fees