Mortgage Broker vs. Loan Officer

When you're looking to get a mortgage loan, you may work with a loan officer or you may choose to work with a mortgage broker. People often confuse the two job types even though both will glean the same results: a new home. However, it is important to understand the difference between the two types of jobs so you know what to expect from them during the mortgage application process.

A.C.L. is a mortgage broker, as well as a correspondent lender. We act as an independent agent for both the borrower and the lender of a mortgage loan. With rates remaining as competitive as they are right now, it is in our best interests to select the lender that offers the most appealing "fit" for our borrower. A.C.L. will customize a mortgage product to meet the needs of each specific borrower, sorting through thousands of programs that are available today.

Mortgage brokers are the middle men between you and the lending institution, which can be a bank, trust company, credit union, mortgage corporation, finance company, or even an individual private investor. A.C.L. will analyze your financial situation to determine which lender is the best fit for your loan needs. We will submit your mortgage application to several lenders, recommending only the most advantageous scenario for our borrower. In other words, we will do the shopping for you. Here at A.C.L., the mortgage consultants are paid based largely upon their monthly loan volume. The rate and terms do not affect their pay; therefore, you can expect to receive the best mortgage product for your particular situation! A.C.L. will work with the chosen lender until the loan closes. Consequentially, your mortgage consultant wants to get your loan closed as quickly and easily as you do.

Mortgage brokers are regulated a little differently, as well. In most states, mortgage brokers are required to complete a minimum amount of continuing education courses to maintain their "active" status annually. This mandatory training forces mortgage brokers to remain on the cutting edge of technology and service.  Most lending institutions (e.g. banks, credit unions, trust companies, private investors) are exempt from this requirement, relying on unregulated training guidelines for their loan officers.   

A loan officer is a representative of a lending institution, such as a bank, who works to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans types to draw from, but all originate from that specific lender.  The products and programs are only as diverse as that particular lending institution.  In other words, you have "all of your eggs in one basket." 

Also known as a loan representative or account executive, loan officers represent the borrower to the lending institution and will guide him or her through the selection, processing and closing of mortgage loan. Loan officers can be paid a commission or salary for their services.