The Definition of a Mortgage Banker

Sometimes, people ask me the difference between a mortgage broker and a mortgage banker. Do you know the difference? It’s a subtle distinction that not many laymen understand until faced with the task of obtaining a mortgage for a new property. A mortgage banker, unlike a mortgage broker, provides the funds for the mortgage, while a mortgage broker negotiates on your behalf with a company, ¬†individual or institution that lends money. After the mortgage is originated (completed), the mortgage banker may keep the mortgage as an investment, or they might sell it to another investor. A mortgage broker never owns the mortgage. A mortgage banker usually services the mortgage themselves, or can sell the servicing rights to another company or investor.

To sum it up, a mortgage banker closes a mortgage using their own funds, while a mortgage broker helps you find a mortgage bank and takes a cut.

At Watermark Home Loans, we are the mortgage bankers. We’re not middlemen, and we have a vested interest in your mortgage, your home, and your continued ability to make payments. If you have any further questions about the differences, please feel free to contact me.