What’s the Difference Between a Mortgage Broker and a Mortgage Agent?
Good question! The answer is a bit different depending on whether you want a mortgage or you want a career in the mortgage industry.
If you’re looking for someone to broker a mortgage for you, there is no difference between a mortgage broker and a mortgage agent. They perform the same function in that process and have access to the same rates and resources within their brokerages.
If you’re looking for a career within the mortgage industry, then the main differences between a mortgage broker vs a mortgage agent is that a broker can become the chief compliance officer of a brokerage (i.e. the principal broker) and can oversee other agents. A mortgage agent can do neither of those things.
The differences in the roles between the two titles is similar to how any teacher can become the principal of a school as long as they meet certain requirements (e.g. extra education). But the role of a principal is different from a teacher.
Principals are responsible for the whole school, deal less with the kids and more with parents, etc. For many teachers, that type of role does not appeal to them. They enjoy the act of teaching and interacting with kids on a daily basis.
Similarly, in the mortgage industry, many agents have no desire to perform the role of chief compliance officer or to oversee other mortgage agents.
They just like to interact with and get to know their clients. They feel satisfaction in helping their clients get a mortgage to buy a home, or refinance their mortgage to decrease their monthly debt payments, or whatever the case may be.
The responsibilities of a principal broker don’t appeal to them.
Who has more Experience / Knowledge? A Mortgage Broker or Mortgage Agent?
Note that the title of “broker” doesn’t imply greater experience or knowledge compared to an “agent”.
While you have to be a mortgage agent for at least two years before you can become a broker, it’s possible for someone to be a broker with five years of experience in the mortgage industry while an agent in the same brokerage can have 30 years of experience.
On a personal note, I don’t see myself ever becoming a mortgage broker. I just like to help my clients through a process that holds a lot of uncertainty and can be very stressful. That’s all I want to do.
But nothing stays the same forever and who knows? Maybe I’ll change my mind in the future.
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