Mortgage Banking Mortgages Financial Services

Mortgage banking is making, selling and servicing mortgages secured by residential or commercial (i.e. income-producing) real estate. Mortgage bankers serve as middlemen, arranging and making loans using short-term funding, and then selling these loans to other lenders and investors, both within the U.S. secondary market and abroad. The buyers of mortgages include private conduits, commercial banks, thrifts, life insurance companies, pension funds, and, most significantly, the secondary market agencies -- Fannie Mae, Freddie Mac and Ginnie Mae -- through various securitization programs. Though some mortgage banking companies may be subsidiaries of depository institutions or their holding companies, mortgage companies themselves do not receive money from individual depositors. [The above quote is taken from the Mortgage Bankers Association of America website at http://www.mbaa.org/about/mission.html ]

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