Banks vs. Mortgage Lenders
A mortgage lender is an institution or authorized individual that extends housing loans to people who can't or don't want to purchase property with their own funds. A bank is one type of mortgage lender.
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Mortgage Bank
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A mortgage bank is a type of mortgage lender that originates mortgage loans and either keeps the loans in their own portfolio or sells them to the secondary mortgage market. Usually mortgage banks sell loans through retail offices.
Wholesale Mortgage Lender
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A type of mortgage lender that generally does not sell mortgages through a retail channel is called a wholesale mortgage lender. Normally, these lenders rely on a network of mortgage brokers to originate their loans.
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Correspondent Mortgage Lender
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Correspondent mortgage lenders are lenders who underwrite and fund their own mortgage loan, but then sell the originated loans to a third party, usually a wholesale mortgage lender, immediately after closing.
Secondary Mortgage Market
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The secondary mortgage market is the place where mortgage lenders sell individual or bundled loans to investors after loans have been originated. Fannie Mae, Ginnie Mae, Freddie Mac and many other institutional and private investors purchase mortgages in the secondary mortgage market.
Mortgage Broker
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A mortgage broker sells mortgage loans by acting as an intermediary between borrowers and mortgage lenders. A mortgage broker collects a borrower's information and submits the information to a mortgage lender for approval. The application is underwritten and funds are extended to the borrower in the name of the mortgage lender, not the mortgage broker.
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References
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