shopping for home loan
What Is a Mortgage Banker?
Before you apply for a mortgage, it helps to understand common industry practices and terms. For example, both mortgage bankers and mortgage brokers help consumers obtain home financing, but they do it in different ways. Which of these describes how mortgage bankers work?
Mortgage bankers are companies which directly originate and sell mortgages.
Mortgage bankers offer loan products from several different companies.
Mortgage bankers are licensed and follow the same laws as other banks.
"A" is correct. Mortgage bankers provide direct financing, so they can sometimes expedite the process and save you certain fees. However, they may be more motivated by their company's interests than by yours. In some states, they don't have to be licensed. They are not banks and do not have to follow the same regulations.