Which type of mortgage company originates loans and places them with various lending institutions?

The correct choice is the mortgage broker. A mortgage broker acts as an intermediary between borrowers and lending institutions. Their primary role is to evaluate a borrower's financial needs, collect necessary documentation, and then shop around to find loan options from various lenders. This allows them to bring multiple lending opportunities to the borrower, which can help in comparing terms and rates.

Mortgage brokers do not use their own funds to lend money; instead, they work with multiple lenders to facilitate the loan process. They are knowledgeable about the different products available in the market and can guide borrowers to make informed decisions based on their situations.

In contrast, mortgage bankers and mortgage lenders often provide loans directly to consumers. Mortgage bankers usually use their own funds or lines of credit to fund loans, and they may also service the loans after closing. Credit unions are member-owned financial institutions that primarily offer lending products to their members, often focusing on personal relationships and community service rather than acting as brokers for multiple lenders.