Definition
A lending institution that originates mortgage loans directly and typically funds those loans on its own balance sheet. Bankers are lenders themselves, unlike brokers.
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Mortgage bankers may also be depository institutions (banks) or non-depository mortgage companies. They can often provide faster processing since decisions are made internally, and they may offer more flexibility in their lending standards. However, they have a more limited product menu compared to brokers. Some mortgage bankers also service loans, meaning they handle the day-to-day collection of payments and escrow administration.
Pro Tip
Direct lenders can sometimes move faster because they make their own lending decisions internally.
Example
A buyer might choose to work directly with a large national bank that is a mortgage banker, appreciating the ability to manage their mortgage alongside their checking account, even if the bank's loan options are more standardized.