What is a primary function of mortgage banking companies?

Mortgage banking companies primarily focus on originating and servicing mortgage loans. A key aspect of their operations involves collecting monthly payments from borrowers and accurately forwarding these payments to the investors who own the mortgage loans. This function is crucial because it ensures that the investors receive their returns on the loans they have funded, and it helps maintain the flow of capital in the real estate market. By managing this payment process, mortgage bankers facilitate a seamless experience for both borrowers and investors, thereby playing a vital role in the overall mortgage industry.

In contrast, other functions listed—such as providing loans exclusively to lenders, offering investment advice to homeowners, or managing property sales—do not accurately reflect the core activities of mortgage banking companies. These alternative options either describe functions of different entities or are too narrow in scope to encompass the broader responsibility of mortgage banking which is fundamentally centered around loan origination and servicing.