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What Is a Mortgage Broker, and Should You Use One? — The. – Mortgage brokers make their money by charging origination and or broker fees, which are paid when the loan is originated (at closing), and typically fall in the 1% to 2% range per loan.

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In Hickam, T.C. Summ. 2017-66, the Tax Court held that a mortgage broker was not a real estate professional and was subject to the passive activity loss rules of Sec. 469.. Facts. During the years at issue, Kurt Hickam brokered real estate mortgages and other loans secured by real estate, both as an independent contractor and as an employee.

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