Mortgage Banker
Definition of "Mortgage banker"
Mortgage banker is the person or business that originates mortgages and receives payments.
The mortgage banker typically sells these mortgages to investors and obtains service fees for the loans. The mortgage banker is a major initiator of Federal Housing Administration (FHA) and Veteran Administration-insured mortgages and also serves a key function in the conventional mortgage markets.
Financial help is often sought from a lender, typically a commercial bank. The bank becomes a warehouse for mortgage money, and the mortgage banker draws on these funds until payment is received from the investors. Usually, the mortgage banker continues to service the loan even after the loan has been packaged and sold. For this management service, a small percentage of the amount collected is retained before forwarding the balance to the investor.
The success of the mortgage banker depends upon the ability to generate new loans. In some geographic areas, mortgage bankers are the primary source for financing real estate. All mortgage bankers try to stay in constant touch with investors and are aware of changing market conditions and lender requirements. Quite often the loan origination fee or finder's fee charged the borrower is more than offset by a lower interest rate from a lender not directly accessible to the borrower.
Mortgage bankers are involved in both commercial and residential financing and also carry out related activities such as writing hazard insurance policies, appraisals, and investment counseling. As with mortgage brokers, mortgage bankers are regulated by state law.
Popular Real Estate Terms
A public officer given the right to authenticate a document, accept a person's oath, administer depositions, and to conduct other activities in commercial business. An official seal is used ...
Single mortgage or other encumbrance that covers more than one piece of real estate. ...
The ability to pay is a self-explanatory term used in Real Estate to determine if the Home Buyer has the financial health to honor a deal. Mortgage Lenders can't afford to lend out money ...
One who has died with a valid will in effect. ...
What is the ANSI (American National Standards Institute) Standard? Before arriving at the definition of ANSI standard, you must know that ANSI stands for The American National ...
State tax based on the value of property received through inheritance. The tax is paid by the recipient not the estate. Tax paid to the government or state upon the death of the taxpayer ...
Lease where, in addition to the rent, the lessee pays the taxes, insurance, and maintenance. As a guarantee for the lessor, the lessee posts a bond payment equivalent to one year's tax, ...
(1) The transformation of a racially integrated neighborhood-bousing pattern into segregated housing. (2) Deterioration, destruction, or decay. ...
Combination of insurance policies on property with each providing an additional increment of coverage exceeding the limits of the preceding policy. For example, policy A adds $70,000, then ...
Have a question or comment?
We're here to help.