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A Mortgage Banker is an institution which originates, approves, and funds Real Estate home loans. Many Mortgage Bankers advertise that they are able to cut out the middle man (the Mortgage Broker). However, this is not necessarily true. After all, someone needs to originate the loan and pass it on to underwriting. In a Mortgage Banking environment, you will work with an originator who works for the institution. A Mortgage Broker simply acts as that originator.
The advantages to Banking over Brokering relate to having a direct path to the underwriting and funding departments. The advantages to Brokering relate to being able to quickly submit to another company in the event of better programs, better pricing, or easier underwriting.
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