Whats the difference between: a thrift, a mortgage banker and a mortgage Broker?
A. Thrifts are mutual savings banks that also offer mortgages. Mortgage bankers do nothing but lend money. Mortgage brokers are not bankers and have no money of their own to lend. They act as an intermediary, working with a number of lenders to find the best possible loan to match a borrower’s particular needs.
A thrift is your typical neighborhood bank — mutual savings banks and savings-and-loan institutions offering savings accounts, mortgages and other financial products and services. Mortgage bankers are in the sole business of lending money. Mortgage brokers are middlemen who, by state law, work on behalf of borrowers. Brokers research a number of lending sources — commercial banks, thrifts and mortgage bankers — to find appropriate loans to meet the specific needs of borrowers they represent.
Thrifts are mutual savings banks and savings-and-loan associations, typically the kind of corner bank where your parents probably got their mortgage. Thrifts offer savings accounts and other services as well as mortgages. Mortgage bankers do nothing but lend money. Mortgage brokers are not bankers and have no money of their own to lend. They act as middlemen, working with a number of lenders to find a loan to match a particular borrowers needs. By state law, brokers work for the borrower.
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