Traditionally, banks and other lending institutions have sold their own products. However as markets for mortgages have become more competitive, the role of the mortgage broker has become more popular. In addition, as different banks and lenders have very different loan acceptance criteria and coupled with increasingly unique profile and needs of different loan applicants, the idea of engaging a one-stop service provider like a mortgage broker becomes even more attractive.
Today in most developed mortgage markets (especially in Canada, the US, the UK, Australia, New Zealand and Spain) mortgage brokers are the largest sellers of mortgage products for lenders. Mortgage brokers exist to find a bank or a direct lender that an individual seeks with a specific loan the individual is seeking. The bank loan officers at a bank or other lending institution are employees who work to sell and process mortgages and other loans originated by their employer. They often have a wide variety of loans types to draw from, but all loans originate from one lending institution. The loan officer takes your application and works to find a home loan that suits your needs. If your personal credit is approved, the officer moves forward to process the purchase.