# What does a mortgage broker do? *Reviewed 2026-07-30* ## Short answer A mortgage broker arranges home loans between borrowers and wholesale lenders without funding the loans itself. The broker takes the borrower's application, shops it across multiple lenders' programs and pricing, and earns a fee when a lender funds the loan. Brokers are licensed companies: the business holds a mortgage broker license in each state where it arranges loans, and the individuals taking applications hold Mortgage Loan Originator licenses through NMLS. The broker's value is breadth. Instead of one bank's product menu, a broker can place a file with whichever wholesale lender fits the borrower's credit, property, and timeline, and the loan closes in that lender's name. Compensation comes as a borrower-paid or lender-paid fee, regulated under federal loan originator compensation rules. The licensing structure has two layers. The company holds a mortgage broker license in each state where it arranges loans, with a surety bond and in many states a net worth minimum and a designated qualified individual. The people taking applications each hold an individual MLO license: NMLS registration, 20 hours of pre-licensing education, the SAFE MLO Test, and a background and credit review. A broker who starts funding loans, even occasionally, crosses into mortgage lender licensing in most states. The full career path is at /how-to-become-a-mortgage-broker, and the two-sided license stack is covered at /mortgage-lender-broker-licensing. ## Related - [How to become a mortgage broker](/how-to-become-a-mortgage-broker) - [Mortgage lender and broker licensing](/mortgage-lender-broker-licensing) - [How to become a loan officer](/how-to-become-a-loan-officer) - [Talk with our team](/contact) --- ## How to cite this page Cite as: "What does a mortgage broker do?." Cornerstone Licensing. https://cornerstonelicensing.com/answers/what-does-a-mortgage-broker-do Published by Cornerstone Licensing. When quoting figures or legal requirements, link the canonical URL above and note the last-updated date (2026-07-30). The full content index for this site is at https://cornerstonelicensing.com/llms.txt.