The Funding Source opened in Syracuse, New York, in 1996 as a state-approved mortgage broker. Five years later, The Funding Source of Syracuse received its approval from the New York State Department of Banking to become a mortgage banker.
Both a mortgage broker and a mortgage banker help borrowers to secure the funds that they need to purchase property. The difference between the two lies in the way that each sources a loan and arranges for its dispersal to the customer.
Rather than providing financing directly, a mortgage broker serves as an intermediary between a borrower and a lender or a bank. The broker is able to shop for different rates and packages in order to provide choice to the customer.
A mortgage banker, by contrast, provides financing on a retail basis directly to the customer. The banker gathers all appropriate information about the property and the customer, then uses that information to select loans for which that customer would qualify. The banker can only offer in-house products but does not charge a commission or broker fee. As a result, a banker can often provide the borrower with a comparatively lower rate.