A mortgage company is traditionally the mortgage lender, who processed your loan application, qualified it, approved it, loaned the money, and then collected payments and maintained records of the mortgage accounts until it was paid off.
Some years ago these functions were concentrated in a single agency, usually a savings and loan company. Increasingly, the various functions are being unbundled and handled by specialists. The loan may continue to be handled by a mortgage banker, but increasingly the loan originator is a company that does that exclusively. The loans are bundled into packages and resold to investors often not as mortgages but as derivatives. The company that processes your payments may be a mortgage service company hired specifically to provide that service for a lender.
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- 3 Reasons To Buy Fulton Financial Corporation
- Hatteras Financial: Another Sequential Book Value Gain Sets This Mortgage REIT Apart
- Is Blackstone Proving Regulators Wrong on Housing?
- The 3 Biggest Risks to Annaly Capital Management, Inc.
- Here's What Your 1 Share of New York Community Bancorp Actually Buys
- Home Depot's Latest Conference Call Contains Key Insights