I was speaking at a seminar in late May that was focused on real estate. This lady asked the question what is the difference between a mortgage banker and a mortgage broker. I understand she primarily asked the question because there was a mortgage broker and mortgage banker on the panel. She wanted to know specifically their roles. I too learned the difference that day. A mortgage banker specializes in home mortgages and refinancing. There is no middle man. Therefore the process is less convoluted. A mortgage broker however, is a middle man between the lender and the borrower. They cannot make a loan nor fund the loan. Paperwork gets passed from broker, to lender, to processor and then closing agent. If you have used a broker in the past, you know that the broker has to call someone in order to find out the status of your loan. They do not know what is going on with your loan at any given time. Which are you going to use if you are in the market for a house?
