How is being a Mortgage Broker different than being a Mortgage Banker?

Mortgage Brokers are simply responsible for the matching of an investor and a mortgage borrower. Mortgage Brokers do not actually fund the loan for their customers. Mortgage Broker customer loans are funded directly from the mortgage investor. Mortgage Bankers not only match mortgage borrowers with the most appropriate loan product (via their investor relationships), they also actually fund the loan to their customer. After the loan is closed and funded, it is sold to the selected investor in a secondary market transaction.