How to Become a Mortgage Banker

Mortgage Banker (MB) is a lender that lends out his own money. They can also be known as “Direct Lenders”.  A MB helps to reduce the fee paid to the mortgage broker by facilitating the loan process. Moreover, a MB can give direct approval to the loan. The mortgage industry distributes mortgages to residential, family, multifamily, associations, recreational industry and commercial real estates. MBs play a vital role in originating funds for loans through various federal governments programs. This loan fund is used for issuing loans to middle income home buyers.

Indispensible Qualifications

  • A college degree in the accounting, finance, economics or related fields is desirable. MBA can be an added advantage.
  • Obtain an MB license if it is mandatory in your state. A license is also essential if you want to work for a mortgage bank or brokerage firm.
  • Attain an MB certification; it increases the chance of you being nominated by a bank.
  • Knowledge of basic computer software is preferred. Because hiring companies want MBs to evaluate mortgage applicants using their computer software.
  • Improvise on your communication and interpersonal skills.
  • Previous experience in the mortgage industry is a valued addition.
  • Ability to work flexible hours.

Shooting for the Sky

Getting a license as a MB is integral as mortgage banking is under regulation of several federal laws, enforcement agencies or by licensing boards. You can acquire a license after passing a state exam and attending few starter courses.


Become a member of the Mortgage Banker Association (MBA). Generally these associations have the authority over the real estate finance industry in that state. It offers three certification programs; namely: commercial, residential and the master’s program. There are other professional organizations like the American Bankers Association, The Bank Administration Institute and so forth which have their own MBA programs. Join any of these courses and become certified after passing their exam.

Enlisting as a member of some association like this will also help in receiving updates about the industrial trends; formulate good relationships with housing industry professionals, as well as marketing strategies, ethical business practices, and much more.

Career Information

The mortgage industry grants a number of career opportunities. They are:

  • Originating – creation of mortgages – locating borrowers
  • Processing – collecting documents as required by the mortgage banking organization and verifying them.
  • Underwriting – evaluation of the loan documents so that loan application can either be approved or denied.

You can start your career as mortgage broker first and gradually after gaining enough field experience you can become a MB. But you should take this leap after contemplating this momentous step from various angles about the pros and cons in this industry. The main point is MBs face many more risks than the brokers. For instance, one of the risks that can surface is the repurchasing of an existing loan by a new customer. Apart from these occupational risks, they are also bound by the Home Mortgage Disclosure Act and other new regulations. Such regulations can be burdensome and stringently regulated by the states.