| p>Be More Informed By Understanding Your Home | | | | - A mortgage bank is a lender that specializes in |
| Loan Mortgage Lender Options | | | | originating and selling home mortgage loans directly to |
| If you're looking to purchase a home, then it's important | | | | consumers. The key difference between a mortgage |
| to understand that the first step in the home buying | | | | banker and a mortgage broker is that a mortgage |
| process is to choose and meet with a lender. Before | | | | banker funds its lending with its own capital, obtaining |
| obtaining a home loan mortgage, it's in your best | | | | their funds by selling their loans in the secondary |
| interest to understand the different lender options | | | | mortgage market. Once they originate a loan, they |
| available so that you can make the best decisions | | | | place it on a warehouse line of credit until they can sell |
| possible and ensure that the home buying process is a | | | | it to an investor such as Fannie Mae or Freddie Mac. |
| rewarding experience. | | | | Banks and Credit Unions |
| Types of Lenders | | | | - National banks and credit unions raise money to fund |
| There are several different types of financial | | | | mortgage loans through their customers' checking and |
| institutions that offer mortgage loans. These include | | | | savings accounts and certificates of deposit. They |
| mortgage banks and credit unions, among others. | | | | provide loans to individual consumers or businesses |
| Federal and state agencies regulate most of these | | | | with the money they have on deposit. Larger |
| lenders and require them to follow federal and state | | | | institutions may also sell mortgage-backed securities in |
| mortgage law. | | | | the financial market to obtain funding to sell mortgage |
| Mortgage Brokers | | | | loans to customers. When banks and credit unions |
| - A mortgage broker is a middleman, representing a | | | | make a mortgage loan, they will either hold it in portfolio |
| wide variety of lenders ranging from online mortgage | | | | or sell it to large secondary mortgage market investors |
| companies to traditional national banks. They act as | | | | such as Fannie Mae or Freddie Mac. |
| intermediaries who sell home mortgage loans for | | | | Savings and Loan Associations |
| individuals or businesses. As the mortgage market has | | | | - A savings and loan association (S&L), or "thrift," |
| become increasingly competitive in our society, the role | | | | specializes in accepting savings deposits and making |
| of mortgage brokers has overtaken traditional banks | | | | loans, particularly mortgage loans, and they are owned |
| and lending institutions as the largest sellers of | | | | by and operated for the benefit of its members. In |
| mortgage products. Although brokers will often offer a | | | | other words, a savings association member is a |
| greater variety of lending options, they may also be | | | | stockholder in the company, which is typically |
| less regulated depending on the state. | | | | incorporated and must adhere to federal or state |
| Mortgage Banks | | | | incorporation requirements. |