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Mortgage Bank |
| Mortgage Banks serve the purposes of servicing mortgage loans, specifically. These are state licensed financial institutions that offer to the customers a variety of mortgage loans. Owing to the fact that all mortgage banks are non depository organizations and do not receive income like a savings bank, they require the assistance of secondary mortgage markets to operate. Funds are generally provided by the secondary markets and this is one of the most important characteristics of the mortgage banks. |
Mortgage banks primarily take care of the housing finance issues in many countries, like in India and therefore they are also called as housing finance industry. Several local and foreign banks, cooperative banks, and non - banking financial institutions together account for strengthening the potential of mortgage banks.
The most significant features associated with all mortgage banks are:
- Depending on the income of the applicant, mortgage banks determine the mortgage amount.
- Fixed rate mortgages are characterized by fixed number of years as well as fixed rates for the mortgage. Generally a 15 year or a 30 year fixed rate mortgage may be opted for.
- Convertible mortgage options offer one a variety of choices to pick and choose from. In today's world of changing economic status, this kind of loans offered by the mortgage banks are the most preferred varieties.
The top 5 Mortgage Banks in the US depending on the domestic deposits as well as assets under management are:
- Citigroup Inc
- Bank of America Corporation
- JP Morgan Chase and Company
- Wells Fargo and Company
- Wachovia Corporation
Following are the types of Mortgage Loans
provided by mortgage banks
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