Mortgage banks. What is a “mortgage bank” for purposes of code 7?
A “mortgage bank,” often referred to as a mortgage company, means, for these purposes, a non-depository institution that purchases mortgage loans and typically originates such loans. A “mortgage bank” might be an affiliate or a subsidiary of a bank or thrift holding company or it might be an independent mortgage company. In either case, use code ‘7’ – unless the purchaser is an affiliate of the seller, itself, in which case use code ‘8’.
