The Difference Between Mortgage Banker and Broker

A mortgage broker is a third party provider that arranges mortgage financing with lenders

A mortgage banker is a direct lender whose sole expertise is mortgages

A retail bank is a bank who sells financial services. Their main focus is not on mortgages.

Mortgage Brokers    

Advantages-multiple lenders to choose from

Disadvantages–not empowered to make mortgage loans, inflexible pricing & no control

Mortgage Bankers    

Advantages –the same advantages of a mortgage broker + flexible and competitive pricing, the ability to approve and fund loans without other’s permission, mortgage specialists

Disadvantages–lack of a national brand name

Retail Banks      

Advantages-brand name

Disadvantages-only 1 set of guidelines whereby if the bank cannot secure the loan or offer a good rate, the salesperson has no other option and the client has to reapply to others, not aggressively priced in a rising rate environment