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The key difference between a mortgage broker and a correspondent lender is:

Loan Origination Activities · 27% of the SAFE exammedium

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Correct answer: Correspondents fund and close loans in their own name, then sell them; brokers arrange loans on behalf of other lenders

Correspondent lenders close loans in their own name using their own funds (or warehouse lines), then sell the closed loans to investors. Mortgage brokers arrange loans on behalf of wholesale lenders and never fund in their own name.

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