To secure a conventional loan it is important to know the major sources of funding and the relationship of Banks, Mortgage Brokers, Mortgage Bankers and Fanny Mae's involvement in the Mortgage Process. Banks Banks are the most common lender to individuals purchasing or refinancing their homes. A bank may offer a wide selection of mortgage programs for their clients, however in most cases a bank will work strictly from it's rate sheets offering little flexibility. Mortgage Brokers A Mortgage Broker is an individual in the business of assisting in arranging funding or negotiating for a client. The Mortgage Broker does not loan the money himself.
Brokers charge a fee or receive a commission for their services.
The Mortgage Broker may work with a number of banks or Mortgage Bankers to secure the best mortgage program and rate for their clients. Mortgage Bankers Mortgage Bankers are mortgage lenders that make the money available for individuals to purchase or refinance their homes. Mortgage Bankers work with Mortgage Brokers and, at times, independently in making mortgage loans. The Mortgage Banker may keep the loan on their books or sell the loan on the open market. Inc. All rights reserved.