Residential Mortgage Network is a mortgage banker, not a broker. There are very distinct “operational” differences which impact the time it takes to obtain a loan approval, making it an important consideration to our customers and business partners. A mortgage banking company “makes the loan decision” and is burdened with the risk. A mortgage broker assigns the loan decision to a mortgage banker. We appreciate opportunities to explain the difference, because we feel it helps people understand the edge it gives us in the industry. We are proud to be a banker, which allows us to provide such great products, interest rates and an efficient process in this market.
A mortgage banker closes a loan in its own name. The mortgage banker may retain the loan to service (collect the mortgage payments), or may subsequently sell the loan on the secondary market. Even local banks sell loans on the secondary market if it is a fixed rate. At RMN, we choose the home loan programs and interest rates based on the lenders we sell to – it makes us very competitive because we have several options of where to sell a loan, not just one or two. We maintain the control of loan approvals, underwriting and loan closings.
Interestingly, many banks often act as brokers to offer FHA, VA and Rural Development home loans, assigning the loan approval and risk to a mortgage banker. The process does work, but often with delays in the loan approval process, which has nothing to do with the program a borrower has chosen, but everything to do with the lender's process.
At RMN, we have listened to the feedback our Realtor friends have given us over the years. We know how important financing and closing dates are to you and we are able to accommodate those dates because we retain control and underwrite these files ourselves. If you are consistently closing loans with other lenders/brokers and struggling to meet your approval time lines, let us help you! We can do it!