definition
strict definition
mortgage bank
A nondepository lender specializing in mortgage loans made directly to its customers.
A mortgage bank is a nondepository lender specializing in direct mortgage loans to customers. Its lending uses funding outside customer deposits, including warehouse credit and proceeds from loan sales in secondary markets.
The lender makes mortgage loans directly to customers. A broker that only arranges another lender's loan does not perform that same lending function.
Loan sales in the secondary market can replenish the funds available for new lending. Receiving a borrower's payments as a servicer is a separate activity from supplying the funding for the loan.
In other languages
- Deutsch
- Eine Bank, die auf die Einräumung von Hypothekendarlehen an Kunden spezialisiert ist.
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