Finance
In Ohio, a 'mortgage banker' differs from a 'mortgage broker' in that a mortgage banker:
AOnly originates FHA loans
BUses its own funds to originate loans and typically sells them on the secondary market, while a broker arranges loans between borrowers and lenders for a fee✓ Correct
CNever sells loans to investors
DIs always a large commercial bank
Explanation
A mortgage banker lends its own funds (from its warehouse line) and sells loans to investors. A mortgage broker matches borrowers with lenders but does not use its own capital — earning a fee for the referral.
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