1.The basic distinction between mortgage bankers and mortgage brokers is: a.Mortgage bankers originate loans using their own capital and a line of credit while mortgage brokers do not. b.Mortgage brokers originate loans using their own capital and a line of credit while mortgage bankers do not. c.Mortgage brokers are not involved in originating new loans but only service existing loans. d.None of the above. 2.PMI provides protection for the ______ in the event of mortgage default. a.Borrower b.Seller c.FHA d.Lender

I would go with financin, 1 a, mortgage bankers are like a bank that can finance their own loans and mortgage brokers are like firms or financial lawyers that act in the position of a bank which is depending on the bank they are acting for to provide the loans. Question 2 would be d, PMI cators for the borrower in case of a mortgage default.