Mortgage bankers differ from mortgage brokers in that the former generally are not third parties to a loan. They generally fund the loan with their own funds.

While at times of a mortgage banker might act in a broker capacity, particularly if the loans is for an amount beyond the capacity of the mortgage banker to fund, this would be the exception rather than the rule.

Secondary Market Activities

Loans are made by mortgage bankers are customarily resold to other lenders and investors in the resale market known as the secondary MARKET. Mortgage loan bankers are engaged in the primary mortgage market when making the loan and in the secondary mortgage market in the sale of the loan.

Many of the loans made by mortgage bankers are made for particular investors such as other lenders and pension plans. They will make the loans to meet the lending criteria desired by these particular investors. Much of their activities deal with out-of-state lenders and investors who desire to make long-term loans secured by California real estate. Because of the size of our real estate market, California mortgage bankers can't assemble packages of trust deeds of significant value.

Types of Property

Most mortgage bankers deal primarily in residential property, the majority of which single-family dwellings. However, some mortgage bankers handle a variety of property and might specialize in large commercial or industrial loans. They work with lenders who desire the highest interest possible from this type of loan.

Portfolio Loans

Portyfolio Loans are loans held by a lender as an investment. It is rare for a mortgage banker to tie up capital in a portfolio of loans. Lending is a capital intensive activity that requires a great deal of capital or the availability of such capital.

Servicing Loans

Mortgage bankers generally want to service the loans they make and resell. Servicing loans means doing the accounting necessary for a loan. The one-quarter percent to one-half percent services fee can be a significant profit center for the mortgage banker when thousands of loans are serviced.

With today's computer-servicing programs, servicing loans is no longer the labor-intensive activity that it was just two-decades ago. Errors in computations have been virtually eliminated.

An advantage of servicing the loans is the control of impound accounts for taxes and insurance when it is collected in advance with loan payments. These funds, when deposited in a bank give a mortgage banker tremendous clout when they are borrowers from banks holding such funds. They are able to borrow funds at extremely attractive interest rates.

The top mortgage brokers can help you get the home you are aiming for by taking you to the best mortgage lender. If you want to find more insights on home mortgage loan you can take the time to explore various home mortgage sites online

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