In days gone by, you went to a savings and association in your area for a mortgage loan. They did the whole job including the application, collecting payments, and maintaining records. That mom and pop shop approach to mortgages has given way to an industry, where major player specialize in part of the process. Originators receive and process the applications. They sell the application to others who may bundle it and resell to the ultimate lender. That lender need not be the firm that services your mortgage. The lender may very well hire a mortgage service company to provide that service.
Related Fool Articles
Recent Mentions on Fool.com
- Is High-Yield Preferred Stock Right for You?
- The Advantages of Buying a Home at the End of the Month
- 10 Immediate Steps to Start Planning for Retirement in Your 40s
- The Best Stocks for Investing in Wall Street Banks
- The 2 Best Stocks for Investing in Regional Banks
- 5 Things You Didn?t Know About FHA Mortgage Rates