Finance
A Texas mortgage broker differs from a mortgage banker in that a mortgage broker:
AUses their own funds to make loans
BOriginates loans and places them with wholesale lenders but does not use their own funds to fund the loans✓ Correct
COnly provides second lien financing
DIs not required to be licensed under the SAFE Act
Explanation
A mortgage broker originates loans and places them with wholesale lenders/investors. The broker earns fees for this service but does not use their own capital to fund the loan. A mortgage banker uses their own funds (or warehouse lines of credit) to fund loans before selling them.
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