What is the difference between a mortgage agent and a mortgage broker?
A mortgage agent, also called a loan officer, works for a single lender and can offer only that institution's loan products. A mortgage broker is an independent intermediary who does not lend money but finds loans from multiple lenders, and the borrower pays the broker a loan-specific fee for that service, according to the CFPB. Some financial institutions operate as both lenders and brokers.
Mortgage agent is not a licensed category in California. The individual who takes a residential mortgage loan application or negotiates its terms for compensation is a mortgage loan originator (MLO), who needs a Department of Financial Protection and Innovation (DFPI) license or an MLO endorsement on a Department of Real Estate license. A broker is a company-level role: under the California Financing Law, a broker negotiates or performs acts in connection with loans made by a finance lender, while a real estate broker negotiates loans secured by liens on real property.
Sources: California DRE: MLO License Endorsement Information; California DRE: How to Obtain a Mortgage Loan Originator License (RE 19).
Florida does not license a mortgage agent. The individual credential is the mortgage loan originator (MLO) license, held by the person who solicits loans, accepts applications, and negotiates terms. A mortgage broker is a separate entity license: a company that conducts loan origination activities through one or more licensed loan originators it employs or contracts with. A Florida loan originator must work for, or contract with, a licensed mortgage broker or mortgage lender, and may not work for more than one at a time.
Sources: Fla. Stat. 494.00312: Loan originator license; Fla. Stat. 494.00313: Loan originator license renewal.
New York has no license type called a mortgage agent. The individual who takes mortgage applications and negotiates loan terms is licensed as a mortgage loan originator, the term used in the state's licensing system. A mortgage broker in New York is a company or sole proprietor registered with the Department of Financial Services to solicit, process, place, or negotiate loans for others. Registered brokers cannot make loans themselves; they place loans with licensed mortgage bankers or exempt organizations.
Sources: N.Y. Banking Law § 590: Definitions; registration required; N.Y. Banking Law § 591-a: Application to register as a mortgage broker; fees.