Tips Paradise

Mortgage Lenders Facts and Information

Mortgage Lenders Primer

What really are mortgage lenders and what are their purposes for mortgage lending? According to some of the professionals in the mortgage lending industry, mortgage lenders are not really the people who give a chance for borrowers to get mortgage loan, they are just the visible instruments who work to give borrowers a mortgage loan. The actual mortgage lenders are those companies, usually banks, who offer giving home loan.

8 Types of Primary Mortgage Lenders

There are actually 8 types of primary mortgage lenders today according to a report that I have read the other day and it is also important that you know each and everyone of them because it may help you know what they can do for you before getting a mortgage loan or home loan.

• direct lenders - Direct mortgage lenders may specialize in so many types of mortgage lending schemes like, first and second mortgages, debt consolidation, refinance, and bankruptcies. These direct mortgage lenders may usually fit into the category of mortgage bankers or portfolio lenders but the most important distinguishing factor that they are known for is their ability to be able to fund their own loans. Some of these direct lenders are big ones but there are also small ones and their best resource is the warehouse lines of credit.
• portfolio lenders - Portfolio lenders are sometimes mistaken to be the same as the direct lenders but this is not the case. These types of lenders are institutions that generate their own set of loans for their portfolio. What to do with these loans may be another issue because there are data that says they may sometimes sell these loans on a secondary market. This is what makes them an independent player in the mortgage loan industry and they don’t need to sign up for the rules under Fannie or Freddie. Most members here are large banks. They also sell what is known as seasoned loans which are the type of loans that are paid without late remittance for over a year. What they do is to make their own loans this set. In the mortgage loan industry, these types of loans which they make sure they pay on their own as they are their own are marketable. You can also call this as “self cooked loan” if you like my term.
• wholesale lenders - Wholesale lenders are those that have the funds intended for loan extensions and has the ability to employ mortgage brokers to find their loans. Usually, these types of wholesale lenders would focus on types of loans under different categories such as sub-prime, alt-A, reverse mortgage, multi unit, raw land and more.
• mortgage banker - When we talk of a mortgage banker it is that company or individual which sells and services mortgage loans, usually in a secondary mortgage market where he receives a commission for the sale.
• mortgage broker - The mortgage broker is ether an individual or company who matches the borrower and the lender for loan origination. The broker may also be the one responsible for lender negotiations for the best financial deal that a borrower may take.
• correspondent lenders - Correspondent lenders are a little bit like mortgage bankers. They both have a say in the lending decision, they also fund the loan itself with the use of their own funds or with the use of their credit line as a resource.
• online mortgage lenders - The only difference of these lenders is that they do business online and have the resources for online use unlike the ordinary mortgage lenders.
• sub-prime mortgage lenders – Sub-prime mortgage lenders are the type of lenders that help borrowers by providing them loans even if they are those with less than perfect credit. They are also those that are either independently moving on their own or affiliated with the mainstream lenders.

Reverse Mortgage Lenders Facts

These reverse mortgage lenders are actually agencies. They may either be from the government or a non-profit sector. These reverse mortgage lenders offer reverse mortgages to senior U.S. citizens or people of the United States who are at the age of 62 and above and own a house. They are the ones who are eligible to apply for a reverse mortgage so all they have to do is to look for these reverse mortgage lenders and everything will be taken cared of from there. Duly authorized by the Department of Housing and Urban Development or HUD, reverse mortgage lenders may serve these senior citizens with the help of Federal Housing Administration or FHA.

Payment Modes for Mortgage Lending

lump sum payment - This is the type of payment by reverse mortgage lenders to their borrower in a one time take all pay and all payments are made based on the home value.

regular payments - Regular payment mode is a monthly basis payment of the same character as the lump sum payment with respect to home value but will be done in a monthly basis.

Both these payment modes however by the reverse mortgage lenders are offered in a payment that is based on the value of the home as what is provided above. You must remember however that the repayment of the mortgage will be automatically in effect when the owner moves from his home or if he/she sells the whole property. the amount of the mortgage is also transferable in case the borrower dies. If the heir fails to do so, the property will be sold to recover the losses, loan amount and the interest that it generated.

3 Types of Reverse Mortgage

• single purpose - mortgage lenders in this type of reverse mortgage are no-profit
• federally insured - here, the lenders are federal government
• proprietary reverse mortgage - this last type of reverse mortgage is totally private and so are the lenders which are mainly private lending companies.

So here’s a few basic information about mortgage lenders, brokers, mortgage loans, mortgage bankers and mortgage and lending institutions and how they work for your mortgage loans. It is also all about how they may help you with matters regarding mortgage loans and mortgage lending stuff.