What do mortgage bankers earn fees for?

Mortgage bankers earn fees primarily for originating and servicing loans. The origination process involves various activities, including underwriting, processing applications, and securing funding for loans. This is a key function because it ensures that borrowers can access the financing they need to purchase homes or other real estate.

Servicing loans involves managing the loan account after it has been originated, which includes collecting mortgage payments, managing escrow accounts, and handling customer service inquiries related to the loan. Mortgage bankers can charge fees for these services, which provide a steady income stream over the life of the loan.

In contrast, managing properties for owners, appraising property values, and conducting market analysis are typically functions associated with real estate agencies, property management companies, or appraisers, rather than being core activities of mortgage bankers. Therefore, those functions do not generate the specific kinds of fees that mortgage bankers earn.