What is the difference between a mortgage lender and a mortgage broker?

Short answer

A mortgage lender is a financial institution that makes or extends the mortgage loan. A mortgage broker does not itself fund the ordinary brokered loan; it helps the consumer locate lenders or loan options, typically for a loan-specific fee. Some institutions operate as both, so ask which role applies to your transaction.

Full explanation

The CFPB's distinction is about the origination role. A is the institution that makes the mortgage loan. A broker is an intermediary: it does not advance the funds on an ordinary brokered loan. Its role is to locate lenders or loan choices, and the charge for that work is typically tied to the specific loan.

The same company can act in both roles, so ask which function applies to your file. Whether you work with a broker or a direct lender, the CFPB says you should still compare loan terms, interest rates, and fees across more than one option. This comparison does not recommend one channel over the other.

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