Broker vs Banker? 3 Choices When Looking for a Place to Work

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Often I am asked what to consider when looking for a place to work. When it comes to the loan officer role you have a variety of choices to pick from. It can be overwhelming because there are thousands of companies to consider. The good news is there are basically three fundamental choices that can narrow down your selection.


Three Choices To Consider

There are three choices to consider when you are looking for a new place to work as a loan officer. They are 1. A depository bank; 2. A broker shop; 3. A local mortgage bank. Let’s explore the pro’s and con’s of each of these three choices so you can narrow down your selection.

1. A depository bank is an institution that holds money on behalf of customers such as Bank Of America, Chase and Wells Fargo. In order to service their customers, they often start a mortgage division. The pro’s of working at a depository bank are they typically provide small salary and leads. In addition, when working for a depository bank you are not required to go through state licensing. The con’s are there are a limited number of mortgage products, you don’t get paid as much on the loans you close and there is a limited amount of help or support to help you develop your own business. If you are looking to grow your own business, working for a bank might be a way to get started but it is easy to get complacent. If you are looking to grow your own business and have unlimited earning potential one of the other two choices might be better.

2. A broker shop is another option and offers a high degree of freedom and flexibility. At a broker shop you are essentially delivering a loan on behalf of the customer to an investor. As a brokerage you don’t have a warehouse line and have access to a variety of products that you can sell. With this freedom and flexibility comes a huge amount of risk and little support. As a broker you are responsible for all compliance, building your business, generating your own leads, and finding training on products and programs. It is your responsibility to take the loan form origination through processing. After a loan is process it is sent to outside UW (with the investor) which can take 4 days to 4 weeks. This means that you have very little control over the closing date or UW overlays. In addition, working in a brokerage requires state licensing unlike the depository bank.

3. A local mortgage bank, like Sente Mortgage, is an option that offers the stability of a depository bank and the flexibility of a brokerage. Working at a local mortgage bank will require state licensing and more CE requirements than a depository bank. The upside is that most mortgage banks offer a variety of products combined with a fair level of support. At a minimum, support might include compliance and processing|underwriting help. At Sente, we offer a 5-star support structure that includes compliance, processing, 24-hour underwriting, a learning management system and ongoing live training courses, one-on-one consulting based on our high performance model, automated marketing, lead incubation and automation, an agent referral program and a digital hub just to name some of the unique support offers

A local mortgage bank often has the best of both worlds – the products and independence of a brokerage and the support of a depository bank.

If you are looking to make a career move, carefully consider your long-term goals by asking yourself these questions:
1. Do I prefer unlimited income potential?
2. Do I prefer more autonomy?
3. Do I prefer support to help build my business?
4. Am I licensed or can I get licensed?
5. Do I enjoy generating business through networking, meeting customers and real estate agents?

The answer to these questions can help guide you on your journey to finding the best place for you to work. If you prefer unlimited income potential with autonomy, support and enjoy building your business by networking, Sente Mortgage might be the right fit for you and your team.

Let’s explore your options together! At Sente, we have a 30-minute process to help you create your 5-year life and business plan. Within 30 minutes we can help you discover which option is best for you.

If you are interested, please email career@sentemortgage.com.

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