|
Lenders are considered to be
direct lenders if they fund
their own loans. A "direct
mortgage lender" can range
anywhere from the biggest lender
to a very tiny one. Banks and
savings & loans obviously have
deposits they can use to fund
loans with, but they usually use
"warehouse lines of credit" from
which they draw the money to
fund the loans. Smaller
institutions also have warehouse
lines of credit from which they
draw money to fund loans.
Direct lenders usually fit into
the category of mortgage bankers
or portfolio lenders, but not
always.
One
way you used to be able to
distinguish a direct lender was
from the fact that the loan
documents were drawn up in their
name, but this is no longer the
case. Even the tiniest mortgage
broker can make arrangements to
fund loans in their own name. |
|
|
