Who is responsible for closing and funding loans in the mortgage industry?

In the mortgage industry, the mortgage banker plays a critical role in the closing and funding of loans. This responsibility includes managing the entire loan process from application through funding. Mortgage bankers have the authority to underwrite and eventually close loans, meaning they finalize agreements with borrowers and ensure all necessary documentation is complete and compliant with regulations.

Once the loan is closed, the mortgage banker ensures that the funds are properly disbursed to the appropriate parties, which can include the seller in a home transaction or the funding account set to handle the transaction. This role is essential in facilitating a seamless transition from loan approval to actual funding, thus making the mortgage banker pivotal to the lending process.

In contrast, the loan officer primarily works with borrowers to guide them through the application process but does not typically handle the closing of loans directly. The real estate agent is focused on helping clients buy or sell properties rather than navigating loan closures. Investment bankers largely deal with capital markets and corporate finance rather than individual mortgage lending, making them less relevant in the context of closing and funding mortgages.