A mortgage broker is licensed with the state. The broker license give an individual or broker business the authority to place loans with lenders in a given state. A mortgage broker must always have their mortgage broker license placed with a mortgage broker business. Neither a mortgage broker nor a mortgage broker business can make a loan in any state. A mortgage broker acts as a facilitator working with multiple lenders to negotiate loan terms that meet the financial requirements of a borrower. Only a mortgage lender can approve a loan and lend the funds necessary to create mortgage, the broker simply acts as conduit. Many of todays mortgage lenders act as both a Lender and Broker. Should you use a mortgage broker? As mortgage lender we’re biased and say “No” you shouldn’t.