A commercial mortgage broker’s salary varies depending on a few factors, such as geographic location, industry experience, and whether they work for a brokerage firm or not, to name a few.
One of the best descriptions for a mortgage loan broker is a service provider who gives professional advice to potential borrowers regarding loans and interest charges; eligibility requirements; terms and conditions; and, required documents. The broker is not responsible for producing the money but acts only as liaison between the lender and borrower. The standard income for mortgage brokers depends on the loan amount and arrangement between the two parties. The current state of the economy and real estate markets frequently influence the commissions of these agents.
Rules on Granting of Commissions
As a rule, the mortgage broker’s commission is paid by the borrower in the form of closing costs. Last year, the Federal Reserve came out with policies that forbid mortgage brokers from being compensated by both borrower and lender for the same transaction. It also stated clearly that the broker commissions are given based on the loan amount which is 0.5 percent for any completed loan transaction.
Comparison of Income
If you compare a mortgage broker’s earnings to other banking careers, the broker’s yearly income is near the top of the scale. Based on research findings, commercial loan officers earn from $40,000 up to $60,000 annually. Mortgage loan supervisors take in a minimum of $50,000 until $65,000 while regional branch managers earn from $55,000 to $80,000. Bank executives and financial sales managers have salaries that go over $90,000 each year.
The United States Bureau of Labor Statistics says that in 2010, commercial mortgage brokers in the country had an average yearly compensation of $65,900. The median income was pegged at $56,490.
The largest employers of commercial mortgage brokers were made up of depository creditors, providing them with a regular salary of $63,770. Non-depository creditors paid brokers an average of $66,170 yearly while those worked in credit intermediation earned $68,530 annually. Brokers rendering services for management of companies earned $71,740 annually. The federal government gave brokers an average compensation of $71,130 every year.
The state providing the highest compensation for mortgage brokers was New York with $104,230. The rest of the salary ranges are as follows;
District of Columbia = $79,190
Washington = $75,990
California = $75,450
New = $74,190
Bright Career Outlook
The BLS also advised that employment of commercial mortgage brokers is expected to go up by 10 percent from 2008 to 2018. The growing population can make the demand go up. However, the increasing automation enables borrowers to obtain loans without the help of a broker. This is one of the reasons for the reduction of this growth.
The broker’s job credibility is quite strong because loan applicants will likely get hold of more favorable offers from brokers compared to commercial mortgage companies. Brokers intermingle with numerous lenders thereby intensifying the opportunity of securing a loan with the best terms. Mortgage brokers can find lenders who offer loans to consumers with unsatisfactory credit scores or borrowers who do not have enough money to be used as down payment. It is always practical to choose a broker who charges a specific fee for services instead of the traditional broker who mark up wholesale prices exorbitantly.