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Mortgage brokerageSubject 18 of 19

Mortgage broker

A person or entity that solicits, processes, places or negotiates mortgage loans for others rather than acting as the funding lender in the ordinary broker role.

Direct answer

What does Mortgage broker mean?

A person or entity that solicits, processes, places or negotiates mortgage loans for others rather than acting as the funding lender in the ordinary broker role.

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?

New York 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 person or entity that receives or seeks credit and promises repayment under the loan terms.LenderA person or entity that extends credit and is entitled to repayment under the loan agreement.Mortgage bankerA 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 originatorAn individual who, for compensation or expected gain, takes a residential mortgage application or offers or negotiates residential mortgage terms, subject to statutory exceptions.Referral feeCompensation paid for directing business or a customer to another provider.Table fundingA closing arrangement in which a loan is funded by an advance from another person and assigned at or around settlement, as defined by applicable lending rules.
Sources used2 references with section locators

The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.

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