What is a mortgage banker?

A mortgage banker is primarily defined as a company that originates, services, and sells loans. This role is critical in the mortgage industry as it involves various functions like underwriting mortgage applications, managing the loan process, and ultimately selling the loans to investors or on the secondary market.

Mortgage bankers have the ability to fund loans using their own capital, which allows them to facilitate the lending process more directly and efficiently than brokers who might not originate loans themselves. They play a vital role in ensuring that borrowers have access to the necessary funds to purchase real estate, thus influencing the overall housing market.

In contrast to other roles in the mortgage space, such as brokers who primarily act as intermediaries between borrowers and lenders without using their own funds, mortgage bankers take on more comprehensive responsibilities within the lending process. This distinction highlights the unique position mortgage bankers hold within the financial ecosystem related to real estate financing.