What is a mortgage broker and what do they do?

A mortgage broker does not lend money. The broker brings borrowers and lenders together, helps assemble the application documentation, explains disclosures, and submits the file to a lender for underwriting and approval. Borrowers pay the broker a loan-specific fee, either directly or through the lender, but not both. Some financial institutions operate as both lenders and brokers, so consumers should ask whether a broker is involved in their transaction.

An Alaska Mortgage Broker is an intermediary who brings borrowers and lenders together but does not use its own funds to originate loans, per the Alaska Division of Banking and Securities definition. A Mortgage Lender, by contrast, is any company that offers and underwrites home loans on Alaska-based properties. A broker company must hold an Alaska Mortgage Broker/Lender license, which requires a $75,000 electronic surety bond.

A mortgage broker is a state-licensed, non-bank company that arranges residential mortgage loans for borrowers for compensation. Its loan originators take loan applications and offer or negotiate loan terms on the borrower's behalf. In Arizona, the Arizona Department of Insurance and Financial Institutions (DIFI) licenses mortgage companies and their loan originators through the Nationwide Multistate Licensing System (NMLS). Unlike banks, non-bank lenders and brokers cannot accept deposits from consumers.

A mortgage broker is a company licensed by DISB to arrange residential mortgage loans between borrowers and lenders, rather than lending its own funds. The individual who takes a residential mortgage loan application, offers or negotiates loan terms, or solicits a loan on behalf of a borrower for compensation must hold a DC mortgage loan originator license and be sponsored by a licensed lender or broker. DISB administers these licenses under the Mortgage Lender and Broker Act of 1996.

In Florida, a mortgage broker is an entity-level license, not an individual credential. Under Chapter 494, a mortgage broker conducts loan originator activities through one or more licensed loan originators employed by the broker or contracting with it as independent contractors. The broker must designate a qualified principal loan originator, and it cannot employ or contract with a loan originator who is already working for another broker or lender, with an exception for contract loan processors who file a declaration of intent with the office.

A mortgage broker is a company that solicits, processes, places, or negotiates residential mortgage loans for borrowers, without lending its own funds. In Georgia, brokers operate under a Mortgage Broker/Processor License from the Department of Banking and Finance, and licensed loan originators must work as supervised W-2 employees of a broker or lender. A broker that funds loans through warehouse lines is instead treated as a lender.

A mortgage broker is a company licensed by the Idaho Department of Finance under the Idaho Residential Mortgage Practices Act to engage in mortgage brokering. License applicants must demonstrate financial responsibility, character, and fitness under Idaho Code § 26-31-206(2)(a), and must file unaudited financial statements through NMLS. Individuals who take residential mortgage applications or negotiate loan terms for the company must each hold their own Mortgage Loan Originator License.

A mortgage broker is generally the company or entity that arranges residential mortgage loans between borrowers and lenders, while the mortgage loan originator is the licensed individual who takes applications and negotiates loan terms. In Indiana, brokerage companies are licensed either by the Department of Financial Institutions under a Mortgage Lending License or by the Secretary of State under a Loan Broker License, and they employ or sponsor licensed MLOs.

A mortgage loan broker is a person or company licensed by the Kentucky Department of Financial Institutions to negotiate mortgage loan rates, terms, and conditions between borrowers and lenders. Kentucky law treats brokers separately from mortgage loan companies, which fund loans: brokers pay a $1,000 license fee, post a surety bond of at least $50,000, and renew by November 30 each year with a flat $1,000 annual assessment.

A mortgage broker is a licensed business that arranges residential mortgage loans for borrowers in Louisiana. Brokers are licensed by the Louisiana Office of Financial Institutions (OFI) through the Nationwide Multistate Licensing System (NMLS), with a $500 application fee and a $400 annual renewal fee. Each broker employee who takes residential loan applications or offers or negotiates loan terms must also hold an individual mortgage loan originator license.

A mortgage broker is a person who, for a fee or other valuable consideration, assists a borrower in obtaining a mortgage loan and is not named as the lender in the agreement, note, deed of trust, or other evidence of the debt. In Maryland, a company in the mortgage lending business needs a Mortgage Lender License covering lender, broker, and servicing activity, and the individuals who take applications or negotiate terms for it need individual MLO licenses.

A mortgage broker is a company that arranges residential mortgage loans between borrowers and lenders rather than lending its own funds. In Minnesota, brokers operate under a Residential Mortgage Originator company license from the Department of Commerce, which authorizes first and second mortgage brokering, home equity lending, reverse mortgages, third-party processing and underwriting, loan modifications, and lead generation. This company license is distinct from the individual mortgage loan originator license.

A mortgage broker is a person or entity registered with the New York Department of Financial Services to solicit, process, place, or negotiate mortgage loans for others. Brokers do not lend their own money: New York law prohibits registered brokers from making mortgage loans, so they must place loans with licensed mortgage bankers or exempt organizations such as banks. Brokers commonly earn an origination fee of 1% to 2% of the loan amount, paid by the borrower, the lender, or both.

A mortgage broker is a company that, for compensation, brokers residential mortgage loans on North Carolina real estate rather than lending its own funds; it is one of the license types issued under the state's SAFE Mortgage Licensing Act. A broker applies through the Nationwide Multistate Licensing System and Registry (NMLS), pays a $1,250 application fee, maintains a surety bond of at least $75,000, and must evidence $10,000 in liquidity.

A mortgage broker is a company credential in Washington, distinct from the individual Mortgage Loan Originator license. Brokers act as intermediaries between borrowers and multiple lenders, while loan officers work for a single institution. A Washington mortgage broker must appoint a Designated Broker who has passed the Designated Broker Test and documented mortgage-related experience. The company must hold a surety bond starting at $20,000, rising to $40,000 or $60,000 as Washington loan volume increases.

In West Virginia, a mortgage broker is a company licensed by the Division of Financial Institutions that arranges residential mortgage loans for borrowers rather than funding the loans itself. Brokers are regulated at the company level: an applicant pays a $350 license fee, must show at least $10,000 in tangible net worth, and carries a surety bond of $50,000 to $100,000 depending on annual loan volume. Brokers also pay $5 for each residential mortgage loan brokered in a calendar year.

A mortgage broker is a company that arranges residential mortgage loans for borrowers and is paid for that service rather than lending its own funds. The individuals who take applications or negotiate loan terms for a broker are mortgage loan originators, who must be individually licensed and sponsored by the company. Wyoming licenses broker companies through the Division of Banking, with surety bond amounts of $25,000, $50,000, or $100,000 depending on annual loan volume.