Direct lenders are generally larger organizations than mortgage brokers and better capitalized. Direct lenders have fewer programs than mortgage brokers but may have more knowledge of the details of their programs. This may sometimes mean faster approvals. They generally sell their loans to investors like Fannie Mae and Freddie Mac . Mortgage bankers may interpret these guidelines based on their own lending philosophy.
Banks Offer a wide range of financial services including mortgages.
They generally offer a few select mortgage programs. Banks may keep loans in their portfolio or sell their loans. Banks may also work with other mortgage bankers to originate their loans. Savings and Loans Generally offer portfolio-adjustable loans which are easier to qualify for than most other loans. Finance Companies Generally specialize in B and C paper loans for poor-credit borrowers, as well as 2nd mortgages.