Casa Academy

Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.

Mortgage Broker

A mortgage broker is a licensed intermediary who originates loans on behalf of borrowers by shopping multiple lender programs, earning compensation from lenders, borrowers, or both, while the funded loan is typically underwritten and owned by a wholesale or correspondent lender rather than the broker itself.

Exam context

Mortgage broker originates but typically does not hold long-term loan asset. Mortgage banker funds loans. Real estate broker sells property; different license. Kickback questions involve undisclosed referral fees.

Role in origination

Brokers gather application documents, pull credit, select products matching borrower profile, and coordinate closing with title and appraisal vendors. They do not usually service loans long term. Mortgage bankers fund with their own warehouse line or portfolio. Depository loan officers work for banks offering proprietary products only.

Disclosure and compliance

Broker compensation must appear on the Loan Estimate. Anti-steering rules limit pushing higher-cost products without justification. Real estate agents refer buyers to brokers but may not accept undisclosed fees for settlement service referrals under RESPA. State licensing requires education, testing, and continuing education separate from real estate licenses.

Examples

  • Wholesale placement

    A broker submits a borrower file to three wholesale lenders, selects the best rate after lock confirmation, and the chosen lender funds the loan at closing.

  • Borrower-paid compensation

    A borrower pays a 1% broker fee at closing disclosed on the LE while the broker also receives lender-paid compensation within legal limits.

Keep studying

Practice mortgage broker questionsEnroll in pre-licensing

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