A mortgage broker is a contractor who analyzes mortgage loan products and counsels customers on loan availability, qualification requirements, interest rates and terms. A mortgage broker doesn't actually loan any money and only serves as an intermediary between the lender and the borrower. The average yearly pay for a mortgage broker often depends upon the socioeconomic status of his clientele and the corresponding value of the loan products. Since a broker's income is partially based on commission, the economy and real-estate market often affect salary levels.

Salary Range:

Depending on geographic location, demographics such as cost of living and average income, experience in the industry, the local real estate market and the number of annual customers, a mortgage broker's annual salary can fluctuate. According to The College of William and Mary, a mortgage broker's average salary range is between $60,000 and $90,000 per year. Since it's the responsibility of the mortgage broker to contact borrowers and locate suitable loan options, most independent brokers work on a commission basis. Brokers who work for firms might receive pay and benefits in addition to their commissions. Mortgage News Daily reported Bureau of Labor Statistics results from 2006, in the middle of the real estate boom, showing the median income of mortgage brokers as $51,760. Downturns in the real estate market can greatly affect mortgage brokers' business; the BLS calculated that the number of mortgage brokers declined by over 50 percent as the real estate boom turned to bust.

Commission Rules:

A mortgage broker's commission is usually paid by the borrower in the form of closing costs or loan origination points. In 2011, the Federal Reserve issued rules that prohibited mortgage brokers from receiving commission from both a borrower and lender in the same transaction. The rules also stated that a mortgage broker can only receive commissions based on the loan amount. The Mortgage Professor cites 0.5 percent of the loan amount as a typical commission on a completed loan transaction.

Industry Comparisons:

When comparing a mortgage broker's salary to other banking career salaries, the broker's annual pay nears the top of the scale. According to The College of William and Mary, commercial loan officers make between $40,000 and $60,000 a year, mortgage loan supervisors between $50,000 and $65,000 and regional branch managers between $55,000 and $80,000. Only small business bankers, regional vice presidents and financial sales managers have a salary range that exceeds $90,000 per year.


A mortgage broker's job credibility is strong because careful loan shoppers will likely receive more favorable offers from mortgage brokers than direct lenders. The Mortgage Professor website explains that mortgage brokers interact with multiple lenders, increasing the chance of obtaining a loan with the best terms. Mortgage brokers can often locate lenders who offer loans to individuals with poor credit ratings or borrowers who have limited funds for a down payment. According to The Mortgage Professor, it's advisable to select an Upfront Mortgage Broker (UMB) who charges a specific fee for services, rather than a conventional broker who might mark up wholesale prices for products and services.

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