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Difference Between Mortgage Brokers vs Mortgage Bankers?
What are the difference between mortgage brokers vs mortgage bankers?
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1 Reply
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Mortgage brokers and mortgage bankers originate home loans for homeowners and homebuyers as well as real estate investors. Mortgage brokers have wholesale lending relationships with wholesale mortgage investors and financial institutions. Mortgage brokers get paid a yield spread premium or commission of a maximum of 2.75%. The maximum commission a mortgage broker can make is 2.75% for the entire mortgage broker company. Mortgage brokers has access to multiple wholesale mortgage investors whereas mortgage brokers are captive and only have access to their own products. There are no maximum commission mortgage bankers. Mortgage bankers can charge 5% or more in commission. The higher the commission the higher the rate to the consumer.