Which type of organization funds loans with their own capital and typically sells them on the secondary market?

Mortgage bankers are entities that specialize in originating, funding, and sometimes servicing mortgages. They use their own capital to fund these loans initially. After funding the loans, mortgage bankers frequently sell them on the secondary market, which is a marketplace where existing loans and mortgages can be bought and sold, typically to investors. This process allows mortgage bankers to recoup their capital and continue to fund additional loans, thus facilitating a continuous flow of mortgage finance.

In terms of the other options, credit unions primarily serve their members by providing loans but are not typically focused on selling loans in the secondary market in the same manner as mortgage bankers. Investment banks do participate in the mortgage market but primarily in a capacity of underwriting and packaging loans, rather than funding them directly. Retail banks, while they do fund loans and may sell them, often have different business models that may include holding onto a larger portion of the loans rather than actively participating in the secondary market to the same extent as mortgage bankers.