Mortgage banker

A company that originates loans and resells them to secondary mortgage lenders like :Fannie Mae or Freddie Mac.

As a mortgage banker, lenders have control over the underwriting and fund your loan with their own money.

And because a mortgage banker lends their own money you do not have to be licensed in states such as Texas to work for a mortgage banker.

Some Mortgage Bankers also act as brokers, offering a wider range of products.

All loans originated by mortgage bankers are sold to a secondary source and must adhere to the qualifying requirements of that source.

Most mortgage bankers are not required to disclose the "rebate" given from the lender. Make sure to talk with your broker to get the best loan you deserve.

While some bankers may have access to more competitive rates, you may find a quicker funding time. The bottom line is that you feel comfortable with whomever your working with.

Advantages of using a Mortgage banker are their ability to underwrite loans in house, which translates into faster closings. Most mortgage banks will loan their own money and be able to be somewhat flexible on their guidelines. Some mortgage bankers will have access to funds not available to some others. Due to the volume of the individual bank, pricing will usually be lower.

Most mortgage banks differ from commercial banks in that they have no depository functions. Mortgage banks only offer home financing products and no checking/savings accounts. Some mortgage banks have no retail divisions and only offer their loan products through mortgage brokers.

Mortgage Bankers typically employ their own closing department and underwriters, rather than outsourcing a loan's underwriting and closing to third parties.

Mortgage Bankers can also broker your loan to another investor if their own program is not in your best interest.

A mortgage banker can usually get a lower rate than a mortgage broker because there is one less step in the loan process. The mortgage banker underwrites the loan and can pass the savings on to the borrower.

A private mortgage banker will have access to loan programs designed to enable high net worth individuals to purchase and refinance multi million dollar real estate utilizing a variety of flexible underwriting methods unavailable through normal banking channels

A mortgage banker utilizes funds from the secondary mortgage market such as Fannie Mae, Freddie Mac, or other large mortgage servicing companies. Mortgage Bankers require secondary market funds because a mortgage banker is a non-depository institution, which means they do not receive income from deposits, as a savings bank does.

Mortgage Bankers use their own assets to fund home loans. They often sell their loans on the secondary markets to investors shortly after closing the loan in their name. They usually make their money on loan fees and the proceeds from the sale of the mortgage to secondary market.

» DISCLAIMER: The information contained in this article on 'Mortgage banker' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.