| Mortgage banks are the set of companies that sell | | | | contrast, primary lenders often provide loans to |
| loans to other companies and loan investors. They | | | | customers when the economy is down, unemployment |
| allow for mutually beneficial relationships between | | | | high, and there is demand for money in the market. |
| borrowers and lenders - the borrower gets money | | | | This lender sells off these loans to mortgage bankers |
| now, and the lender gets the interest that will accrue. | | | | when the economy gets back on track. Often the |
| Mortgage bankers work by creating a huge resource | | | | primary lender charges a premium for each loan that |
| base consisting of loans of various types. Loans may | | | | he sells to a mortgage banker. |
| be serviced by mortgage bankers and most of them | | | | Some mortgage transactions may also involve |
| operate through wholesale lending departments. Most | | | | mortgage brokers. These brokers often act as |
| banks, non-banking financial organizations and loan | | | | intermediaries in sale of loans to mortgage bankers. |
| investors pick up loans from the market. This is | | | | Mortgage bankers act as wholesale lenders and cater |
| because loans are often considered long-term | | | | to mortgage brokers for obtaining loans from the |
| investments. | | | | primary market. Some mortgage bankers offer loans |
| According to the performance of the economy, the | | | | to brokers at below market rates. These brokers then |
| fortunes of mortgage bankers vary. Most mortgage | | | | lend the money to a customer and charge a fee in |
| bankers buy out loans when the outlook of the | | | | between. Thus the client ends up getting money at |
| economy is stable or is witnessing steady growth. In | | | | market rates. |