Mortgage Banker Definition

A mortgage banker is a person or company that originates mortgages, using their own or borrowed funds to fund and close mortgages. Mortgage bankers may retain some or all of their mortgages (in practice, few mortgage bankers retain any mortgages) or may package and securitize them for resale to investors. On retained mortgages, mortgage bankers might directly service the mortgage or might sell servicing rights to another organization. Mortgage bankers make most of their money from the origination fees charged during the mortgage process.