Who originates and funds their own loans, which are then sold on the secondary market?

The correct choice involves a mortgage banker, who is a financial institution or entity that originates and funds their own loans. This means that mortgage bankers handle the process of approving and issuing loans directly to borrowers, providing them with the necessary funds to purchase property. Once the loans are closed and the borrowers have received their funds, mortgage bankers then sell these loans on the secondary market, which allows them to recoup the cash they initially invested and provide more loans.

This process is a critical operation in the real estate financing world, as it helps maintain liquidity in the market by enabling mortgage bankers to replenish their capital and continue to lend to new borrowers. In contrast, mortgage brokers act as intermediaries between lenders and borrowers but do not fund loans themselves—their role is primarily to facilitate the loan process rather than directly engage in lending. Real estate agents focus on buying and selling properties and do not typically get involved in the financing aspect directly. Loan officers, on the other hand, work for lenders and assist in the origination of loans but do not technically fund them themselves. Their role is more about guiding borrowers through the application process rather than capitalizing loans.