Mortgage banker - A company that originates loans and resells them to secondary mortgage lenders like :Fannie Mae or Freddie Mac.
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.
Some Mortgage Bankers also act as brokers, offering a wider range of products.
There is a misconception that a mortgage banker has more leeway in qualifying a borrower because they are lendding "their own money".
The fact is that most all loans originated by mortgage bankers are sold to a secondary source and must adhere to the qualifying requirements of that source. Therefore mortgage bankers do not have any greater leeway in qualifying borrowers than brokers do.
As a mortgage banker, lenders have control over the underwriting and fund your loan with their own money.
There are different types of 100% loans. You can
either get 1 loan for 100% or an "80/20" loan. Speak to your mortgage
professional to see which program is best for you!
