How does a mortgage loan officer or broker get paid?

Short answer

A mortgage or broker is usually paid a loan-specific fee or commission by you or by the lender. Federal law bars pay that varies with the loan's terms, but lenders can still use a salary, a flat amount per loan, a percentage of the loan amount, or a mix.

Full explanation

The person who helps you obtain a mortgage is typically paid for that loan. The money can come from you or from the lender you use. Loan officers often work for one lender. Brokers typically work with several.

The CFPB notes that federal law prohibits commissions from changing based on the mortgage's terms. Within that rule, lenders have flexibility: a salary, a fixed fee per loan, a fixed percentage of the amount borrowed, or a combination. When pay is per loan, the lender can also set a minimum or maximum.

Before you work with someone, ask what the fees are and who pays them. You can still compare lenders and brokers.

Sources reviewed