Mortgage Broker
An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. A mortgage broker gathers paperwork from a borrower, and passes that paperwork along to a mortgage lender for underwriting and approval. The mortgage funds are then lent in the name of the mortgage lender. A mortgage broker collects an origination fee and/or a yield spread premium from the lender as compensation for its services. Investopedia Says:
A mortgage broker is not to be confused with a mortgage banker, which closes and funds a mortgage with its own funds. Mortgage brokers frequently facilitate transactions for mortgage bankers. Related Terms:
Assumable Mortgage
Conventional Mortgage
Loan Officer
Mortgage Banker
Mortgage Originator
Mortgage Pipeline
Mortgage Servicing Rights - MSR
Origination
Predatory Lending
Third-Party Mortgage Originator |