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Mortgage Banker

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Financial Dictionary

Mortgage Banker

A company, individual or institution that originates, sells and services mortgage loans.

Investopedia Commentary

Don't confuse a mortgage banker with a mortgage broker. The distinction lies in the fact that a mortgage banker originates and services the loans whereas a mortgage broker only brings the two parties of a loan together.

Related Links

Understanding Your Mortgage
Understanding the Mortgage Payment Structure
The Reverse Mortgage: A Retirement Tool

See also: Conventional Mortgage, Fannie Mae, House Poor, Housing Market Index, Mortgage, Mortgage Broker, Origination

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Financial Dictionary

mortgage banker

An organization that makes real estate loans that are then resold to another party. The mortgage banker's income derives from the fees it charges to originate and service the mortgages. Sale of the mortgages gives the mortgage banker more funds to use in making additional loans.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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