Facts about Mortgage Companies

California mortgage companies are in the business of locating lenders and borrowers. They arrange loans between these parties.

These companies do not take deposits. Capital raised and fees originating from servicing and sales, finance operations.

There are mortgage firms that represent pension funds, banks, life insurance companies and other lenders. These companies originate, process, close, and service loans on behalf of other lenders. This service attracts a fee.

Some companies act as brokers. Such companies charge a fee for bringing a borrower together with a lender and they suffer no risk because they do not service any loans. There are mortgage firms that service the loans that they originate. Find out more here.

Sub-prime mortgage lenders are mortgage enterprises that focus on lenders with less than stellar credit. They lend to people with a credit score below 620. Because of the risk that these companies assume, their interest rates are high.

Mortgage bankers are companies that originate and sell their loans to investors such as Fannie Mae and Freddie Mac. Warehouse credit lines finance their loans.

Mortgage lenders play an important role in the economy.  They provide employment, facilitate home ownership, and pay taxes. There are many mortgage enterprises in California.