First thing first, you might be wondering what the difference is. For a little foundation, below are some standard terms you may come across when researching where or how to get a loan. 

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Borrower: The person applying for the mortgage in agreement to pay it back later according to the agreed-upon terms. There can be multiple borrowers per loan. 

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Mortgage Lender: A mortgage lender is a mortgage bank or financial institution offering and underwriting home loans. Lenders will use specific guidelines to verify clients' credit and ability to repay a loan. The lender will set the terms, interest rate, repayment schedule, and other critical aspects of the client's mortgage.

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Retail Lender: A retail lender lends money to individuals or retail customers. Lenders can include banks, credit unions, savings and loan institutions, and mortgage bankers. They may or may not offer mortgage loans, car loans, checking and savings accounts, or other consumer products.  

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Mortgage Broker: A mortgage broker serves as a middleman between the borrower and various mortgage banking institutions. The broker takes the application, checks credit and income, and often handles much of the underwriting and processing, but ultimately the chosen lending institution will approve and fund the loan. Instead of a borrower having to shop around for the best rate and mortgage solutions a mortgage broker can do that for them. A mortgage broker is self-employed but may have their license held under a managing broker. 

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Mortgage Banker/Morgage Loan Originator (MLO): A mortgage banker/mortgage loan originator works for a lending institution that funds loans at closes with its own money. Most retail banks and credit unions employ mortgage bankers.

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Underwriter: An underwriter works for an insurance, investment, loan, or mortgage company. They assess everything from a client's credit report to their health to determine if they should take on an applicant's contract based on their calculated level of risk.

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To try to put it more simply, when a borrower searches for a loan, they will work with someone (a mortgage broker/mortgage banker/loan originator) to see what they qualify for and whom they'll apply to get the loan from (the lender).

 

The lender employs the underwriter to take a fine tooth comb to the borrower's situation and the property involved to make sure the minimum requirements are met to qualify for the loan that has been applied for.