How Mortgage Lenders Make Money. You should use this document to fully understand all of the fees, charges and potential penalties for the mortgage. A mortgage broker applies for loans with different lenders on your behalf, shops for competitive mortgage rates and negotiates terms. He takes it to his bank, which holds 10 percent in reserve, and. We go into more detail on discount points below. Late fees, prepayment penalties and other charges are another source of revenue for lenders over the life of your mortgage. Some bankers cheat, some bankers lie, and some bankers take foolish risks that threaten the entire global economy.
