Types of Mortgage Lenders
It is more difficult to completely differentiate types of mortgage lenders at present than it used to be. Nevertheless, in the descriptions below we have tried to overlook the specific features of mortgage participants of mortgage loan in the best way.
Mortgage Bankers
A Mortgage Banker is a large company that originates mortgage loans and creates pools of loans to sell directly to federal national mortgage companies (such as Fannie Mae and others), to jumbo loan investors, etc., and also has wholesale lending divisions. These companies can vary in size and range of responsibilities. Thus, some of them may service the loans they originate and some of them not. It should be pointed out that not all the companies that call themselves mortgage bankers deserve the title. Very often it is done for the sake of marketing.
Mortgage Brokers
Mortgage Brokers are companies, like Platinum Lending LTD, that originate mortgage loans and redirect them to wholesale lending institutions that have a wholesale loan department. Such companies are mediators between the mortgage lender and the borrower. They just find them, bring them together, and underwriting and funding they leave for the wholesale lender. Many mortgage brokers claim to be also mortgage bankers, because they play the role of correspondents. That is why, as it has been said, it is not easy to single out pure types of mortgage lenders.
Wholesale Lenders
Wholesale Lenders are lenders that own many homes for sale through mortgage - wholesale divisions. Most mortgage bankers and portfolio lenders also act as wholesale lenders, while mortgage brokers originate mortgage loan for them. Very often wholesale lenders depend on mortgage brokers so much that they even don’t have their own retail branches.
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