What is the difference between an independent mortgage company and a bank branch?
The main difference is in method of delivery of the product. Independent mortgage companies (e.g., a correspondent lender) sell their loans to other financial institutions that operate on a wholesale basis. Some banks originate on their own behalf and operate with their own employees, facilities, etc. Others banks prefer to pay the independent companies to originate loans and not risk hiring employees and other costs required of this approach. It really is as simple as WHOLESALE vs. RETAIL. Both methods are valid and operate quite well in a market that is highly competitive and efficient. It is up to the customer to evaluate which direction to go based on pricing and service as in any other industry.
Related Questions
- Will the Payslips/P60 be accepted by the Bank/Lender/Mortgage/finance company/Home Office/naturalisation appilcation etc?
- Which type of lending institution is better for a home mortgage; a mortgage company or traditional bank?
- What is the difference between an independent mortgage company and a bank branch?
