Being a banker vs being a broker is one of the most common arguments in the financial industry. While both have their own perks and disadvantages, they are still two different jobs with a different set of skills. So, here’s why being a banker is better than being a broker:

Bankers are revenue drivers.

Bankers are responsible for their own success but have the necessary support to increase their results. They don’t have to deal with different investors and the specific process that comes with each relationship. This is great because bankers get paid better than mortgage brokers, since compensation is not capped like brokers whose max comp is 275 BPS. Another significant advantage is Bankers are able to charge origination in addition to earning margin without having to disclose on the Closing Disclosure (CD). This makes a big difference on earning potential without having to overcharge the client and still being competitive on rate. 

Bankers have more control over their destinies.

Bankers have more control than brokers because:

• Bankers have a team behind them and an internal company that supports their success. 
• Bankers are in complete control of the origination process.
• Bankers have more free time than brokers because all non-originating tasks are delegated to the company.

Bankers have more autonomy in their work.

Bankers have more control over their destinies because they don’t have to deal with non-money-making administrative tasks or wade through compliance rules and regulations like brokers do. They also earn more money than brokers (typically).

More importantly, bankers aren’t as stressed out as mortgage brokers—and this makes a difference in how you feel about your work-life balance. The stress level is lower because there’s less bureaucracy involved in being a banker compared to being a broker; less paperwork and fewer legal liability issues means that bankers can focus on what increases revenue instead of dealing with the daily grind of administrative tasks all day long!

Referral partners prefer Bankers 

The customer experience is smoother as a banker since they control the entire process from cradle to grave. You work with the same ops team over and over. You have a dedicated UW for your branch, so you have a personal relationship with UW. Turn times are consistently 24 HRS to ensure on time closing, every time. Referral partners like the fact you are in complete control to make decisions and fund your own loans. A broker can’t do that. Your file is handed off to a different UW every time. Sometimes the UW isn’t familiar with your file and will insist on unnecessary conditions which creates delays and stress for realtors. 

Being a banker is less stressful than being a mortgage broker.

As a banker, you don’t have to deal with all the compliance and legal issues, licensing, and state audits that are required. All of these things can be avoided by being a banker since your company will have departments to deal with these administrative tasks on your behalf. That the benefit of being part of a larger group that can benefit from economies of scale and sharing resources. That way you focus on your growing your volume and day to day operations of your branch. These administrative tasks are all taken care of for you, so you get more of your time back and have less stress to ensure a healthy work / life balance:

• Payroll
• Licensing
• Benefits (401K, Health, Vision, Dental)
• Audits
• Compliance
• Technology
• Legal
• Marketing

Bankers don’t have to deal with all the non-money-making activities that will slow down your ability to grow and generate revenue. As a banker, you can make focus on what you do best…building your network and closing more loans. By focusing on this aspect of your business and delegating everything else out you have better job security over time because you will have a more stable profitable branch. 

Conclusion

In conclusion, there are many reasons why being a banker is better than being a broker. Bankers have more control over their destinies and get paid better than brokers do. They also have fewer compliance and administrative hassles to deal with as well as less stress than brokers have when it comes to running a mortgage branch. All these factors make a difference in having a long healthy enjoyable career in the mortgage business.