What Is a Mortgage Company?

A mortgage company is a specialized financial firm that originates and funds residential or commercial property mortgages. A mortgage company often is just the originator of a loan; it markets itself to potential borrowers and seeks funding from one of several client financial institutions that provide the capital for the mortgage itself.

Understanding Mortgage Companies

A mortgage company is a financial firm that ✤underwrites and 💟issues (originates) its own mortgages to homebuyers, using their own capital to issue the loans. Also known as a direct lender, a mortgage compa🔜ny typically only specializes in mortgage products and does not offer other banking services such as checking, investments, or loans for other purposes. Moreover, they will usually offer their own products and will not offer loans or products from other companies.

Many mortgage companies today operate online or have limited branch locations, which may𝔍 reduce face-to-face interaction, but could, at the same time, lowe♋r the costs of doing business.

While a mortgage company will originate loans, they may not service your loan, or keep it on their balance sheet for long. Indeed, many times, a mortgage lender will sell the loan (individually or bundled together with others) to a third-party 澳洲幸运5官方开奖结果体彩网:mortgage servicing institution such as an investment bank, hedge fund, or agency.

Special Considerations

The Equal Credit Opportunity Act prohibits credit discrimina💧tion based on age, race, color, religion, national origin, gender, marital status, or becꦦause you get public assistance. It’s also illegal for lenders to discourage you from applying or to impose different terms or conditions because of these factors.

Finally, it prohibits lenders from denying mortgages to retirees if all standard criteria are met—things like your 澳洲幸运5官方开奖结果体彩网:credit score, the size of your 澳洲幸运5官方开奖结果体彩网:down payment, your 澳洲幸运5官方开奖结果体彩网:liquid assets, and your 澳洲幸运5官方开奖结果体彩网:debt-to-income ratio.

The Bottom Line

When shopping for a mortgage, comp﷽anies that specialize in such lending are worth considering. They may offer rates competitive with local banks or credit unions, and they also m🐷ay offer incentives such as reduced fees. Some companies might also work with borrowers with lower credit scores. Because many mortgage companies operate online, borrowers are not tied only to lenders with nearby physical locations.