Finance
A mortgage broker differs from a mortgage banker in that a mortgage broker:
AFunds loans using their own capital and services the loans in-house
BOnly originates government-backed FHA and VA loans
CActs as an intermediary between borrowers and multiple lenders, earning a fee but not funding the loan✓ Correct
DIs required to be licensed by the Federal Reserve
Explanation
Mortgage brokers originate loans on behalf of various lenders but do not use their own funds to close loans. They shop multiple lenders for the borrower and earn a broker fee or yield spread premium. In California, they must be DRE-licensed or hold a CFL license.
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