A mortgage firm that originates and funds its own loans to sell on the secondary mortgage market is known as a?

A mortgage firm that originates and funds its own loans to sell on the secondary mortgage market is accurately described as a mortgage banker. This type of firm plays a crucial role in the mortgage industry by not only creating loans for consumers but also providing the capital necessary to fund these loans initially. Once the loans are funded, these mortgage bankers have the ability to sell them in the secondary mortgage market, which allows them to recoup their investment and generate liquidity to offer more loans.

This process is essential because it provides homebuyers with access to funds while also creating pathways for various investors to participate in the mortgage market. The selling of loans on the secondary market can help mortgage bankers manage their own risk and maintain their operations without tying up capital for long periods.

The other options, while related to the broader field of real estate finance, do not fit the specific definition of a firm that both originates and funds its own loans. A mortgage broker, for instance, primarily acts as an intermediary between borrowers and lenders, facilitating the loan process but without direct access to funds for loan creation. A loan servicer focuses on managing the repayment process of existing loans rather than originating new loans. A real estate investment trust (REIT) involves investment in real estate assets and does not directly