Home Mortgage Lenders

A home mortgage lender is a bank or other entity that underwrites mortgages which are used for the purpose of financing the purchase of residences.

A mortgage lender should not be confused with a mortgage broker. A mortgage broker is an individual or service that connects consumers with mortgage lenders. A mortgage lender actually underwrites and issues the mortgage itself.

The best way to think of a home mortgage lender is to remember that the home mortgage lender is the company you make your mortgage payments too. The mortgage lender actually holds the deed to the house in a mortgage transaction.

Examples of Home Mortgage Lenders

There are many home mortgage lenders operating in the United States but the biggest and largest home mortgage lenders are government chartered corporations. These are not government agencies they are special corporations which have been given special powers by Congress. The government charted mortgage lenders were created to make sure that mortgages are available to all citizens.

The two biggest government chartered mortgage lenders are Freddie Mac and Fannie Mae. These companies issue mortgages which are sold through banks online and elsewhere. One advantage to working with these lenders is that they have a wide variety of programs to help low income home owners.

Private Home Mortgage Lenders

There are also many private companies and banks that issue home mortgages. Many of these lenders create mortgages then sell them as an investment on Wall Street and elsewhere. It is common for mortgages to be included in mortgage backed securities.

Examples of private mortgage lenders include large corporations like the General Motors Acceptance Corporation or GMAC (which has nothing to do with the car company). These companies issue mortgages that are sold through other entities.

Many of these mortgage lenders are also called third party mortgage lenders. The third party mortgage lenders often issue mortgages directly to the public.

Direct mortgage lenders are companies that issue mortgages directly to the public. These mortgage lenders are usually found online.

How to Find Mortgage Lenders

Locating a mortgage lender is easy because mortgages are fairly easy to get in the United States. Most mortgage lenders have websites where the public can apply directly for mortgages.

Mortgage lenders also operate through banks and sell their products through mortgage brokers. In recent years it has become quite common for some mortgage lenders to act as brokers. That is they issue some of their own mortgages but also act as brokers for mortgages issued by others.

Home mortgage lending is a highly regulated industry in the United States. Citizens have the right to complain about mortgage lenders’ actions by complaining to the Federal Housing Administration (FHA) or to their state government.