There are several types of mortgage brokers, and the key features of each type can vary. Here is a table that outlines some common types of mortgage brokers and their key features:
| Type of Mortgage Broker | Key Features |
|---|---|
| Independent mortgage broker | Works with multiple lenders and offers a range of mortgage products |
| Captive mortgage broker | Works with a single lender and may only offer a limited range of mortgage products |
| Mortgage banker | Funds the loans it originates and may also sell the loans to other investors |
| Mortgage broker-banker hybrid | Offers the services of both a mortgage broker and a mortgage banker |
It’s important to note that mortgage brokers are not the same as mortgage lenders. Mortgage brokers act as intermediaries between borrowers and lenders, helping borrowers find the right mortgage product and working with lenders to originate the loan. Mortgage lenders, on the other hand, are the entities that actually provide the funds for the mortgage loan.