- Originator of a loan.
A mortgage company is a company whose business is to create or finance mortgages for properties. A mortgage company is often just the originator of a loan. So, it is a financial institution who makes loans in return of fees (origination fees, loan servicing fees).[1] It markets itself to potential borrowers and seeks funds from one of several client financial institutions that provide capital for the mortgage itself.[2]
The Government regulates some parts of the lending process, but mortgage banking companies can set their own standards to determine who can get a mortgage.
Usually we make a mortgage to finance homes or refinance previous mortgages.
Then in case of non-payment, the mortgage banker can proceed to a prosecution operation in execution of the pledge.
- Depository Bank.
Mortgage banks can also be depository banks. These banks service the checking and savings needs of their clients.[3]
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[1] « Mortgage Banker », Investopedia.
[2] « What’ is a Mortgage Company », Investopedia.
[3] Duncan Jenkins, « List the functions of a Mortgage Bank », Sapling.com.
