Bank vs. Broker vs. Mortgage Company: Where Should a New MLO Work?
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Quick Answer
- Banks and credit unions typically offer base salaries, benefits, and structured training, but lower commission rates.
- Mortgage brokerages give you access to multiple lenders and often higher commission splits, but expect more independence.
- Independent mortgage companies fall somewhere in between, with varying levels of support, technology, and earning potential.
Once you earn your MLO license, the next decision might feel just as big: where do you actually want to work? The type of employer you choose shapes your income, your daily routine, and your long-term career trajectory.
There is no single right answer. The best fit depends on your financial situation, risk tolerance, and working style.
Side-by-Side Comparison
| Factor | Bank / Credit Union | Mortgage Brokerage | Independent Mortgage Co. |
|---|---|---|---|
| Compensation | Base salary + smaller bonuses per loan | Higher commission splits; often commission-only | Base or draw + moderate to high commission |
| Benefits | Health insurance, retirement, PTO | Typically none (1099 contractors common) | Varies; larger companies may offer benefits |
| Product Access | Limited to one lender's products | Multiple wholesale lenders and products | Company's own products plus some partners |
| Training | Structured, multi-week programs common | Varies widely; mentor-based at many firms | Moderate; depends on company size |
| Lead Generation | Inbound leads from existing customers | Self-generated in most cases | Company marketing + self-generated |
| Earning Ceiling | Lower | Highest | Moderate to high |
Working at a Bank or Credit Union
The biggest draw is stability. Most bank-employed MLOs receive a base salary, which provides a financial safety net while you build your pipeline. According to the U.S. Bureau of Labor StatisticsBusiness And Financial Loan Officers.htm Ooh, loan officers across all settings earned a median annual wage of $74,180 as of the most recent data, though compensation varies significantly by employer type and individual production.
Bank advantages for new MLOs:
- Formalized training programs with weeks of onboarding
- Built-in customer base (existing depositors and members)
- Benefits package including health insurance and retirement
- Structured environment with clear expectations
The trade-off: banks offer a limited product menu since you originate loans for one institution. If a borrower does not fit your bank's guidelines, you cannot shop their file to another lender. For someone just starting out in the industryPre License Your First 30 Days As An Mlo What To Expect After Youre Licensed Resources, this structure can make the early months feel less overwhelming.
Working at a Mortgage Brokerage
Brokers do not fund loans themselves. Instead, they connect borrowers with wholesale lenders, shopping for the best rates and terms across multiple institutions.
Brokerage advantages:
- Access to dozens of wholesale lending partners
- Wider range of products for borrowers with unique situations
- Higher commission splits than banks typically offer
- Faster learning curve from working across multiple lender guidelines
The Consumer Financial Protection BureauFinal Rules Loan Originator Compensation Requirements Under The Truth In Lending Act Regulation Z Rules Policy enforces rules under Regulation Z that govern how MLO compensation is structured. Within those rules, brokerages often offer more aggressive splits than banks — but your income floor might be zero in a slow month.
Many brokerages provide training and mentorshipPre License How Mortgage Brokerages Train And Onboard New Loan Officers Resources specifically for newly licensed MLOs. The quality varies, so ask about structure, duration, and mentor accessibility before committing.
Working at an Independent Mortgage Company
Independent mortgage banks (non-bank lenders) occupy a middle ground. They fund loans using warehouse lines of credit and sell them on the secondary market.
What independents often combine:
- A reasonable base salary or draw during initial months
- Broader product menu than a single bank
- Technology platforms built for originator efficiency
- Marketing support and lead generation programs
These companies range dramatically in size and culture. Larger independents invest heavily in lead generation and proprietary technology. Smaller ones may offer more flexibility and direct access to leadership. Talking to originators at different company types, or reading about a typical MLO dayPre License A Day In The Life Of A Mortgage Loan Originator Resources, gives you the clearest picture.
How to Evaluate Your Options
When comparing potential employers, look beyond the headline commission rate. A high split means nothing without leads and training. Focus on:
- Ramp-up support: How does the company generate business for new MLOs? Is there a guaranteed minimum during training?
- Training quality: How long is formal training? Will you shadow experienced originators?
- Technology: What loan origination system, CRM, and digital closing tools will you use daily?
- Culture: Talk to current MLOs — not just hiring managers — for an honest read on the work environment.
Your pre-licensing educationPre License What A Mortgage Licensing Course Teaches You About Real Life Resources gives you the foundation. Company training layers on the practical skills of how to originate within a specific organization.
A Common Path: Start Stable, Then Scale
Many successful MLOs start at a bank or structured independent company to learn fundamentals, build confidence, and close their first loans in a supportive environment. After a year or two of production, they move to a brokerage where earning potential is higher but the safety net is smaller.
Others thrive in a commission-heavy brokerage from day one because they have prior sales experience or a strong network. Neither path is wrong. Understanding what drives early successPre License How New Mlos Win Their First 90 Days Resources helps you choose intentionally.
Choose Your Starting Line Wisely
Your first employer is not your last. But the right starting environment gives you confidence, skills, and momentum that compound over the course of your career. Aceable Mortgage's pre-licensing courses prepare you not just for the NMLS exam but for the real-world decisions you will face from day one. Explore your course optionsPre License How To Choose The Right Mortgage Pre Licensing Course For Your Learning Style Resources and take the first step toward a career you design on your terms.
Take the First Step Today
Start your journey with Aceable Mortgage, which sets you up for success and is built for aspiring professionals ready to grow, not guess.