Marin High End Homes | Marin Real Estate

Marin Real Estate

  • Home
  • New Search
    • Basic Search
    • Advanced Search
    • Search by City
    • Search by Neighborhood
    • Search by School
    • Search by Street
    • Search by Zip Code
    • Search by Map
    • Search by MLS Number
    • Search by Builder
    • Search Foreclosures
    • Commercial Real Estate
    • Featured Listings
    • Marin Open Houses
    • Marin Luxury Real Estate
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Marin High End Homes
  • Open Houses
    • Open Houses by City
    • Marin Open Houses
    • Belvedere Open Houses
    • Corte Madera Open Houses
    • Fairfax Open Houses
    • Greenbrae Open Houses
    • Kentfield Open Houses
    • Larkspur Open Houses
    • Mill Valley Open Houses
    • Novato Open Houses
    • Ross Open Houses
    • San Anselmo Open Houses
    • San Rafael Open Houses
    • Sausalito Open Houses
    • Tiburon Open Houses
  • Buying
    • Dream Home Finder
    • Marin County Real Estate
    • Belvedere Real Estate
    • Corte Madera Real Estate
    • Fairfax Real Estate
    • Greenbrae Real Estate
    • Kentfield Real Estate
    • Larkspur Real Estate
    • Mill Valley Real Estate
    • Novato Real Estate
    • Ross Real Estate
    • San Anselmo Real Estate
    • San Rafael Real Estate
    • Sausalito Real Estate
    • Tiburon Real Estate
    • Marin Open houses
    • Marin Luxury Real Estate
    • Marin High End Homes
    • Marin Luxury Properties
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Marin County Schools
    • Marin Walking Information
    • Mortgage Rates
    • Buyer/Seller FAQs
  • Selling
    • What’s My Home Worth?
    • Marin County Real Estate
    • Belvedere Real Estate
    • Corte Madera Real Estate
    • Fairfax Real Estate
    • Greenbrae Real Estate
    • Kentfield Real Estate
    • Larkspur Real Estate
    • Mill Valley Real Estate
    • Novato Real Estate
    • Ross Real Estate
    • San Anselmo Real Estate
    • San Rafael Real Estate
    • Sausalito Real Estate
    • Tiburon Real Estate
    • Marin Open houses
    • Marin High End Homes
    • Marin Luxury Properties
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Buyer/Seller FAQs
  • Blog
  • About
    • Why Choose Us
    • Testimonials
    • Agents
    • Real Estate News
  • Contact
  • My Dashboard
Submit
Marin High End Homes | Marin Real Estate

Marin Real Estate

  • Home
  • New Search
    • Basic Search
    • Advanced Search
    • Search by City
    • Search by Neighborhood
    • Search by School
    • Search by Street
    • Search by Zip Code
    • Search by Map
    • Search by MLS Number
    • Search by Builder
    • Search Foreclosures
    • Commercial Real Estate
    • Featured Listings
    • Marin Open Houses
    • Marin Luxury Real Estate
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Marin High End Homes
  • Open Houses
    • Open Houses by City
    • Marin Open Houses
    • Belvedere Open Houses
    • Corte Madera Open Houses
    • Fairfax Open Houses
    • Greenbrae Open Houses
    • Kentfield Open Houses
    • Larkspur Open Houses
    • Mill Valley Open Houses
    • Novato Open Houses
    • Ross Open Houses
    • San Anselmo Open Houses
    • San Rafael Open Houses
    • Sausalito Open Houses
    • Tiburon Open Houses
  • Buying
    • Dream Home Finder
    • Marin County Real Estate
    • Belvedere Real Estate
    • Corte Madera Real Estate
    • Fairfax Real Estate
    • Greenbrae Real Estate
    • Kentfield Real Estate
    • Larkspur Real Estate
    • Mill Valley Real Estate
    • Novato Real Estate
    • Ross Real Estate
    • San Anselmo Real Estate
    • San Rafael Real Estate
    • Sausalito Real Estate
    • Tiburon Real Estate
    • Marin Open houses
    • Marin Luxury Real Estate
    • Marin High End Homes
    • Marin Luxury Properties
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Marin County Schools
    • Marin Walking Information
    • Mortgage Rates
    • Buyer/Seller FAQs
  • Selling
    • What’s My Home Worth?
    • Marin County Real Estate
    • Belvedere Real Estate
    • Corte Madera Real Estate
    • Fairfax Real Estate
    • Greenbrae Real Estate
    • Kentfield Real Estate
    • Larkspur Real Estate
    • Mill Valley Real Estate
    • Novato Real Estate
    • Ross Real Estate
    • San Anselmo Real Estate
    • San Rafael Real Estate
    • Sausalito Real Estate
    • Tiburon Real Estate
    • Marin Open houses
    • Marin High End Homes
    • Marin Luxury Properties
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Buyer/Seller FAQs
  • Blog
  • About
    • Why Choose Us
    • Testimonials
    • Agents
    • Real Estate News
  • Contact
  • My Dashboard
Submit
Marin High End Homes | Marin Real Estate

Marin Real Estate

  • Home
  • New Search
    • Basic Search
    • Advanced Search
    • Search by City
    • Search by Neighborhood
    • Search by School
    • Search by Street
    • Search by Zip Code
    • Search by Map
    • Search by MLS Number
    • Search by Builder
    • Search Foreclosures
    • Commercial Real Estate
    • Featured Listings
    • Marin Open Houses
    • Marin Luxury Real Estate
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Marin High End Homes
  • Open Houses
    • Open Houses by City
    • Marin Open Houses
    • Belvedere Open Houses
    • Corte Madera Open Houses
    • Fairfax Open Houses
    • Greenbrae Open Houses
    • Kentfield Open Houses
    • Larkspur Open Houses
    • Mill Valley Open Houses
    • Novato Open Houses
    • Ross Open Houses
    • San Anselmo Open Houses
    • San Rafael Open Houses
    • Sausalito Open Houses
    • Tiburon Open Houses
  • Buying
    • Dream Home Finder
    • Marin County Real Estate
    • Belvedere Real Estate
    • Corte Madera Real Estate
    • Fairfax Real Estate
    • Greenbrae Real Estate
    • Kentfield Real Estate
    • Larkspur Real Estate
    • Mill Valley Real Estate
    • Novato Real Estate
    • Ross Real Estate
    • San Anselmo Real Estate
    • San Rafael Real Estate
    • Sausalito Real Estate
    • Tiburon Real Estate
    • Marin Open houses
    • Marin Luxury Real Estate
    • Marin High End Homes
    • Marin Luxury Properties
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Marin County Schools
    • Marin Walking Information
    • Mortgage Rates
    • Buyer/Seller FAQs
  • Selling
    • What’s My Home Worth?
    • Marin County Real Estate
    • Belvedere Real Estate
    • Corte Madera Real Estate
    • Fairfax Real Estate
    • Greenbrae Real Estate
    • Kentfield Real Estate
    • Larkspur Real Estate
    • Mill Valley Real Estate
    • Novato Real Estate
    • Ross Real Estate
    • San Anselmo Real Estate
    • San Rafael Real Estate
    • Sausalito Real Estate
    • Tiburon Real Estate
    • Marin Open houses
    • Marin High End Homes
    • Marin Luxury Properties
    • Modern Real Estate In Marin
    • Eichler Homes In Marin
    • Buyer/Seller FAQs
  • Blog
  • About
    • Why Choose Us
    • Testimonials
    • Agents
    • Real Estate News
  • Contact
  • My Dashboard
Submit

Types of Mortgage Lenders

Mortgage Bankers

Mortgage Bankers are lenders that are large enough to originate loans and create pools of loans, which are then sold directly to Fannie Mae, Freddie Mac, Ginnie Mae, jumbo loan investors, and others. Any company that does this is considered to be a mortgage banker.

Some companies don’t sell directly to those major investors, but sell their loans to the mortgage bankers. They often refer to themselves as mortgage bankers as well. Since they are actually engaging in the selling of loans, there is some justification for using this label. The point is that you cannot reliably determine the size or strength of a particular lender based on whether or not they identify themselves as a mortgage banker.

Portfolio Lenders

An institution that lends their own money and originates loans for itself is called a portfolio lender. This is because they are lending for their own portfolio of loans and not worried about being able to immediately sell them on the secondary market. Because of this, they don’t have to obey Fannie/Freddie guidelines and can create their own rules for determining credit worthiness. Usually these institutions are larger banks and savings & loans.

Quite often only a portion of their loan programs are a portfolio product. If they are offering fixed rate loans or government loans, they are certainly engaging in mortgage banking as well as portfolio lending.

Once a borrower has made the payments on a portfolio loan for over a year without any late payments, the loan is considered seasoned. Once a loan has a track history of timely payments it becomes marketable, even if it does not meet Freddie/Fannie guidelines.

Selling these seasoned loans frees up more money for the portfolio lender to make additional loans. If they are sold, they are packaged into pools and sold on the secondary market. You will probably not even realize your loan is sold because, quite likely, you will still make your loan payments to the same lender, which has now become your servicer.

Direct Lenders

Lenders are considered to be direct lenders if they fund their own loans. A direct lender can range anywhere from the biggest lender to a very tiny one. Banks and savings & loans obviously have deposits with which they can fund loans, but they usually use warehouse lines of credit for drawing 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.

Correspondents

Correspondent is usually a term that refers to a company that originates and closes home loans in their own name, then sells them individually to a larger lender, called a sponsor. The sponsor acts as the mortgage banker, re-selling the loan to Ginnie Mae, Fannie Mae, or Freddie Mac as part of a pool. The correspondent may fund the loans themselves or funding may take place from the larger company. Either way, the sponsor usually underwrites the loan.

It is almost like being a mortgage broker, except that there is usually a very strong relationship between the correspondent and their sponsor.

Mortgage Brokers

Mortgage Brokers are companies that originate loans with the intention of brokering them to lending institutions. A broker has established relationships with these companies. Underwriting and funding takes place at the larger institutions. Many mortgage brokers are also correspondents.

Mortgage brokers deal with lending institutions that have a wholesale loan department.

Wholesale Lenders

Most mortgage bankers and portfolio lenders also act as wholesale lenders, catering to mortgage brokers for loan origination. Some wholesale lenders do not even have their own retail branches, relying solely on mortgage brokers for their loans. These wholesale divisions offer loans to mortgage brokers at a lower cost than their retail branches offer them to the general public. The mortgage broker then adds on his fee. The result for the borrower is that the loan costs about the same as if he obtained a loan directly from a retail branch of the wholesale lender.

Banks and savings & loans usually operate as portfolio lenders, mortgage bankers, or some combination of both.

Credit Unions usually seem to operate as correspondents, although a large one could act as a portfolio lender or a mortgage banker.

Back to Table of Contents
Marin High End Homes | Marin Real Estate
  • Privacy Policy
  • All Tags

Copyright © 2008 - 2020, All Rights Reserved | DRE Lic #01346729

Owning a home is a keystone of wealth… both financial affluence and emotional security.

Suze Orman
19th January 2021 Tuesday!
Marin High End Homes | Marin Real Estate
  • Login
Forget Password?