National Mortgage Lenders

Most of the mortgage lenders operating in the United States today are national mortgage lenders which operate nationwide.

These lenders operate in most states and make mortgages available in most areas. Some of these lenders are huge corporations like GMAC and others are government sponsored entities like Freddie Mac.

Thanks to the internet many small lenders now operate nationwide as well. Direct lenders and third party lenders can now issue mortgages directly to the public. Some of these are large companies but others are smaller lenders marketing their services directly to customers.

The Internet and National Mortgage Lenders

The internet has completely changed the mortgage industry and made mortgage lending on a nationwide basis possible. Before the internet people had to go to local banks or brokers to get a mortgage. These entities dealt only with a few mortgage companies and offered a few products.

The web allows anyone to contact national mortgage lenders directly and apply for a mortgage. It also allows an almost instant response from a national mortgage lender. This enables people to apply for a mortgage and get it approved in the same day.

The internet has also made national mortgage brokers like Lending Tree which can connect applicants with hundreds of mortgage lenders possible. These brokers can use the internet to put one person’s mortgage request before hundreds of lenders at once and get several mortgage offers back.

Drawbacks to National Mortgage Lenders

There are some serious drawbacks to national mortgage lenders that people have experienced in recent years. The most obvious drawback is that there is no federal agency that regulates mortgages in the United States. Some agencies like the FHA do oversee aspects of the mortgage industry but no organize polices it on a nationwide basis.

Historically mortgages were a local business that was regulated by state and local governments. Generally state governments issue mortgage licenses, regulate mortgage lenders and brokers and prosecute crooked mortgage professionals. Since there is no national licensing or regulation the federal government has a harder time regulating mortgage lending.

This means that a person who feels they have been ripped off or abused by a national mortgage lender may have little or no recourse. It also enables national mortgage lenders to get away with questionable and unethical practices.

Mortgage Law Enforcement

There are a few actions a person who feels they have been victimized by a national mortgage lender can do. An individual who feels they have been a victim of a scam or swindle can connect the Federal Bureau of Investigation. The FBI is cracking down on mortgage fraud and is collecting tips about illegal and unethical behavior.

A person can also contact the Federal Housing Administration which can offer some guidance and help. Your state government, in particular the state attorney general’s office might be able to take action against a crooked mortgage operation. States’ attorney generals have the power to prosecute those violate mortgage laws.

An individual who has lost a lot of money might also consider contacting an attorney. A personal injury or consumers’ rights attorney might be able to file a lawsuit against a corrupt mortgage lender. Such a lawsuit would not cost the consumer any money because the attorney would be paid with the lawsuit settlement.