enter the mortgage business often chooses to be a mortgage banker vs. a mortgage broker primarily to earn yield spread premiums. Mortgage bankers risk their own capital to fund loans and therefore do not have to disclose the price at which they sell mortgages to another company. Mortgage brokers, on the other hand, earning the same yield spread premium, disclose the additional fee to the consumer because the yield spread premium becomes an additional fee earned and therefore discloseable under federal and state law. A mortgage bank generally operates under the different banking laws applicable to each state they do business in. History The market share for mortgage banks in the US of single family mortgage loans went from 20% in 1980 to over 41% in 1991 during the Savings and Loan Crisis. See also Bank Capital market Collateralized mortgage obligation Credit union Financial institution Loan sale Mortgage broker Secondary market References New York State Mortgage Banker List Bank Banks Financial services