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.


Sign up to get “My Two Cents.” It’s a blog where I share my thoughts on everything related to real estate finance.