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Mortgage Bankers Mortgage Bankers are lenders big enough to create loans and pools of loans that they sell directly to lending institutions. They're also referred to as direct lenders. Examples of lending institutions that buy loans and pools of loans from mortgage bankers include:
Any company that assembles, and then sells loans, is considered to be a mortgage banker. Mortgage bankers can vary significantly when it comes to size. Some mortgage bankers service the loans they originate, but some do not. Most mortgage bankers have wholesale lending divisions within their company. Mortgage Brokers Mortgage Brokers are individuals or companies that unite borrowers and lenders together, and then facilitate the loan process between these two parties. The job of the broker is to put borrowers and lenders in contact with each other. If this contact results in a loan, the broker receives a commission, often from both parties. A mortgage broker can evaluate the different types of loans available to you. They can give you insight as to which banks or financial institutions offer the most competitive rates and the terms most compatible with your particular situation. When you enlist the services of a mortgage broker, you often have to pay an initial fee or commission once you obtain your loan. Mortgage broker companies originate loans in order to broker them to wholesale lending institutions with which they have established relationships. Direct Lenders Direct Lender is a term that applies to any lenders who fund their own loans. This category can include mortgage bankers, portfolio lenders, or small lending companies. |
