What is the difference between a mortgage banker and a mortgage broker?
A mortgage banker or lender is generally assumed to originate and fund their own loans, which are then sold on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginnie Mae. Mortgage banking firms are often affiliated with traditional retail banks, and in some instances will service loans in their own portfolios. The loan underwriting (decision making) is typically internal to the company. A mortgage broker is a mortgage company that originates applications for loans, then places those loans with a variety of other lending institutions for initial funding with whom they usually have pre-established relationships. A mortgage broker is a person or entity that specializes in loan originations, receiving a commission to match borrowers and lenders. The Mortgage Broker performs some or most of the loan processing functions such as taking loan applications, ordering credit reports, appraisals, and title reports. Typically the Mortgage Broker does not underwrite the loan and general
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