Pass New York
Open navigation
Back to all terms
Mortgage brokerageSubject 18 of 19

Mortgage broker

A mortgage broker is a person or entity registered in New York to solicit, process, place or negotiate mortgage loans for others, without funding the loans itself.

Direct answer

What does mortgage broker mean?

A mortgage broker is a person or entity registered in New York to solicit, process, place or negotiate mortgage loans for others, without funding the loans itself.

Exam cue: New York generally requires mortgage-broker registration. Banking Law section 590 ordinarily bars a broker from making mortgage loans, while subdivision 5-a contains limited authority for approved FHA-insured lending arrangements.

What does it look like in a question?

Example

A broker gathers an application, shops eligible lenders and arranges funding in the lender's name.

Common exam trap

What should you not confuse it with?

A real estate broker license does not by itself authorize mortgage brokering for a fee.

Related mortgage brokerage terms

BorrowerA borrower is a person or entity that receives or seeks credit and promises repayment under the loan terms.LenderA lender is a person or entity that extends credit and is entitled to repayment under the loan agreement.Mortgage bankerA mortgage banker is a person or entity in the business of making mortgage loans with its own funds or a credit line, subject to applicable licensing or exemption rules.Mortgage loan originatorA mortgage loan originator (MLO) is an individual who, for pay or expected gain, takes residential mortgage applications or offers or negotiates residential mortgage terms.Referral feeA referral fee is compensation paid for directing business or a customer to another provider.Table fundingTable funding is a closing in which a loan is made in one party's name but funded at settlement by another lender's advance and assigned to that lender.
Sources used2 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself.

Keep learning

Put the term back into its full subject.

A definition helps with recall. The subject guide shows how the rule interacts with documents, scenarios, calculations and practice questions.

Study Mortgage Brokerage Try free practice