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Mortgage banker as the word would suggest is not actually a banker; a mortgage banker is a company or an individual who originates mortgage loans specifically for reselling in the secondary mortgage market. Generally a mortgage banker originates and funds his own loan before selling them in the market to investors. In addition to selling mortgages a mortgage banker also collects and manages payments, sells loans in packages, prepare loan documents, negotiate loan terms, service mortgage etc.
Mortgage banker term usage Many companies make use of the word mortgage banker loosely and most brokerage companies can also state themselves as mortgage banker at some instances. But a mortgage broker acts as a middle man in securing loans from other institutions and mortgage bankers whereas a mortgage banker is a person who funds his own loans.
Difference between a mortgage banker and a broker A mortgage broker is an individual or organization who acts as an intermediary between the mortgage lender and the mortgage buyers. Unlike the mortgage banker the mortgage loan broker does not have the capacity to produce/fund his own mortgage loans. A mortgage broker sells loans that are funded by the mortgage lender. The mortgage banker is an individual/organization who has the capacity to fund his own loan. He may or may not depend on mortgage brokers for loan orientation.
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