What is a Mortgage Banker?

A Mortgage Banker can be a company, an Individual, or an institution that originates mortgages, using their own or borrowed funds.

A Mortgage banker can either approve or reject a mortgage application while also acting as an advisor to borrowers to help them choose the best option. After a loan is originated, a mortgage banker can choose to either retain the mortgage in a portfolio or sell the mortgage to an Investor.

After the loan is closed, a Mortgage banker can either service the loan, or they may sell the servicing rights to another financial institution. Their primary business is to earn fees associated with loan origination.

Mortgage bankers close loans in their own names, using their own funds or the funds of their institution.

A bank or a credit Union can be a mortgage banker. In addition, other entities can be mortgage bankers that are not banks or credit unions and only offer home loans.