Question:

Mortgage Lender Definition

Answer:

A mortgage lender will be an institution or an authorized individual that extend housing loans to people who cannot buy property with their own funds.

Mortgage lenders will vary in size and type.

Mortgage bankers are a type of mortgage lenders who originate loans and choose whether to keep them in their own portfolio, or sell them to the secondary market - Fannie Mae, Ginnie Mae, Freddie Mac or other large investors. Most mortgage bankers will have a retail and wholesale division.

Wholesale mortgage lenders often do not have retail departments and rely on mortgage brokers and correspondent lenders for loan origination.

Correspondent mortgage lenders are lenders who act on behalf of a larger lender and are allowed to underwrite the loan and fund it on their own. They usually sell originated mortgages to the wholesale lender shortly after closing the loan.

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