Final answer:
A mortgage broker arranges loans between borrowers and investors, but they do not lend money themselves. So, the option A is correct.
Step-by-step explanation:
A mortgage broker serves as a middleman connecting borrowers with investors and orchestrating loan agreements between the two parties.
It's essential to note that mortgage brokers do not directly lend money themselves.
Although they may engage in purchasing mortgages in the secondary mortgage market, their primary function is to streamline the borrowing process for individuals seeking loans.
While mortgage brokers may receive compensation in the form of fees for their services, their core activity does not involve the acquisition of mortgages for the purpose of resale at a profit.
Instead, their role centers on facilitating the interaction between borrowers and investors, ensuring a smooth and efficient lending process.
This distinction underscores the intermediary nature of mortgage brokers, emphasizing their pivotal role in matching borrowers with suitable lending options rather than engaging in the direct buying and selling of mortgages for financial gain.
Hence, the option A is correct, a mortgage broker arranges loans between borrowers and investors.