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

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.

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.

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

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

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.

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

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