Legal Definitions - mortgage banker

Definition: A mortgage banker is a person or company that helps people get loans to buy real estate. They charge a fee for their services, sell the loans to other people or companies, and collect the monthly payments from the borrowers.

Example: John wants to buy a house but doesn't have enough money to pay for it all at once. He goes to a mortgage banker who helps him get a loan from a bank. The mortgage banker charges John a fee for their services and then sells the loan to another company. John makes monthly payments to the mortgage banker who then sends the money to the company that bought the loan.

Explanation: This example illustrates how a mortgage banker helps people get loans to buy real estate. They act as a middleman between the borrower and the lender, charging a fee for their services. Once the loan is approved, the mortgage banker sells it to another company and collects the monthly payments from the borrower. This allows the lender to make money from the interest on the loan, while the mortgage banker earns a fee for their services.