Finance
Under the New York Banking Law, a 'mortgage banker' differs from a 'mortgage broker' in that a mortgage banker:
AOnly works with commercial loans
BLends its own funds to borrowers and may service loans, while a broker arranges loans between borrowers and third-party lenders✓ Correct
CCannot originate jumbo loans
DIs only licensed by the federal government
Explanation
A mortgage banker originates loans using its own capital (or warehouse lines of credit), funds the loans at closing, and may retain servicing rights. A mortgage broker facilitates transactions between borrowers and lenders but does not fund loans itself.
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