A mortgage broker serves as the middleman between borrowers and lenders, helping people secure loans to purchase residential and commercial properties. They may need to find clients, so they frequently need to network to make new contacts and to maintain existing ones. Pay is often based on commission. The mortgage broker is paid 1 to 2 percent of each real estate deal brokered, according to Realtor.com.
Average Salary and Job Outlook
A mortgage broker earns an average annual salary of $115,000, as of November 2014, according to the job site Simply Hired. Average salaries can fluctuate greatly as may brokers earn performance-based bonuses and commissions. The profession took a hit during the financial crisis of 2008 and has been slow to recover. In 2006, the National Association of Mortgage Brokers had approximately 25,000 members, but that number dropped to 5,100 by 2012, reports the HousingWire website.
Average Salary by State
Mortgage broker salaries vary considerably by state. According to the job site Simply Hired, as of November 2014, a mortgage broker working in New York City earns an average salary of $77,000 per year, $115,000 per year in Los Angeles, $59,000 in Miami, Florida, $127,000 in Chicago and $118,000 in Austin, Texas.
Loan Originator Compensation Amendment to Regulation Z
In 2011, the Federal Reserve Bank released the Loan Originator Compensation Amendment to Regulation Z, putting an end to mortgage brokers receiving commissions from a lender and a borrower in the same sale. Additionally, a mortgage broker is now only entitled to receive commissions based on the loan amount.
Certification and Licensing
Each state has its own set of licensing regulations for mortgage brokers, with requirements such as continuing education hours and whether brokers can work on second loans for customers. The National Association of Mortgage Brokers awards three certifications that are recognized in all but four states, including General Mortgage Associate, Certified Residential Mortgage Specialist and Certified Mortgage Consultant. Mortgage brokers do not have to be certified, however, certification can show that you have attained a high level of professionalism and knowledge in the field.
- Realtor.com: How Are Mortgage Brokers Paid?
- National Association of Mortgage Brokers: NAMB Frequently Asked Questions
- Simply Hired: Mortgage Broker New York City
- Simply Hired: Mortgage Broker Los Angeles
- Simply Hired: Mortgage Broker Miami
- Simply Hired: Mortgage Broker Chicago
- Simply Hired: Mortgage Broker Austin
- Federal Register: Truth in Lending Act (Regulation Z); Loan Originator Compensation
- Simply Hired: Mortgage Broker
- Housingwire: The Fall and Stalled Rise of the Mortgage Broker
- Photo Credit Gajus/iStock/Getty Images
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