How does a mortgage loan officer or broker get paid?
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When you work with someone to get a mortgage, they are usually paid a loan-specific fee or commission. This money is paid by you or by the lender you use.
A mortgage loan officer or broker is the person who works with you to get a mortgage. Mortgage loan officers often work for one specific lender. Mortgage brokers typically work with multiple lenders.
While federal law prohibits commissions from varying based on the terms of the mortgage, lenders can pay mortgage loan officers and brokers in many ways.
For example, a lender can pay a salary, a fixed amount per loan, a fixed percentage of the amount of the loan, or even a combination. When loan officers and brokers are paid per loan, lenders can also set minimums or maximums paid per loan. This flexibility in the law allows lenders to set up different pay arrangements to serve a range of borrowers and loan types.
Before you work with a loan officer or broker, make sure you understand their fees and who pays them. And remember, you can shop around for a lender and broker to find the best rate.