A mortgage company, also known as an LPC, is a company engaged in the commercial business of lending and/or originating mortgages for commercial or residential property. A typical mortgage company is the originator of the loan; it seeks funding from among some of the many financial institutions that provide both the money for the mortgage itself and the associated servicing fee to the mortgage company. In this way, a mortgage company functions as the funding source for the actual transaction and the servicing agency is responsible for collecting the money and providing ongoing servicing. The mortgage company arranges for the loan’s issuance, providing title insurance and arranging for title searches and other documentation. Feel free to visit their website at Prime Mortgage company. for more details.
Commercial banks provide mortgage companies with loans for large or growing businesses as well as those that are just starting out. Smaller banks may lend only to those with extensive credit histories and may require more collateral for a loan. Mortgage loans are available from thrift associations, home equity loans, and even from government funds. Mortgage loans are based upon an individual’s credit history and ability to repay. Mortgage companies and private lenders often work together to approve individual loans, but they still do their own background investigations on borrowers to make sure that they will be able to pay them back.
Private lending institutions like the Small Business Administration to provide guaranteed loans through third-party direct lenders. Direct lenders do not act as mortgage companies or charge origination fees on behalf of the mortgage loan, but they do provide guarantees to the borrowers. One type of private direct lender is the military retirement account (MRDA). The military retirement account is a hybrid entity consisting of a stockbroker-guaranteed loan from the MRDA to the retiree’s account and an investment by the MRDA in commercial real estate.