Yale Roth M.A., M.Ed

Mortgage services companies as opposed to Mortgage SERVICING companies are generally understood to be businesses that provide residential mortgages for people who want to refinance their existing mortgage or take out a new mortgage for a new home purchase.

Mortgage servicing companies – by the way – are the companies who “service” your mortgage.  That is, they are the company who you write your mortgage payment to and who manage your mortgage escrow account.

The level of mortgage services – though - varies throughout the industry.

Just do an online search of mortgage services and you’ll see lots of results.  There are a ton of mortgage companies out there.

Are they all the same?

The answer is “No.”

Some mortgage services companies are large and close a lot of mortgages per month.  Others are smaller and close fewer mortgages per month.  Some mortgage companies take a longer time to close a mortgage; others not so much.

Some mortgage companies may employee loan officers or mortgage processors who don’t have experience, which can make the mortgage process more turbulent for you.

They all provide the same mortgage services; however, some may be mortgage brokerage businesses and others may be mortgage lenders.

What’s the difference between a mortgage brokerage business and a mortgage lender?

Mortgage brokerage businesses take a mortgage application and send it to a wholesale mortgage company who will underwrite, close and fund the mortgage loan.  The mortgage brokerage business – in effect – acts like a middleman.

Mortgage lenders – most commonly called correspondent lenders – underwrite, close and fund the mortgage “in house.”

The mortgage application is not brokered out.

The mortgage services to the consumer that both the mortgage brokerage business and mortgage lender offer are the same: a standard residential mortgage.

The mortgage rates and fees may be different and the mortgage process is set up differently; however, the bottom line mortgage service is the same.

Don’t confuse mortgage services with CUSTOMER service or the ease with which you get a mortgage.  Those are completely different items.

In my next post, I’ll address the question “How to find a good mortgage company?”

Is it all about mortgage rate and fees?  Stay tuned.

Related Posts:

• Mortgage Rate Questions – “Are The Mortgage Rates The Same For A Cash Out Refinance?”
• Mortgage Questions – “How Much Money Is My Mortgage Company Making?”
• Mortgage Rate Questions – “What Happens If My Mortgage Rate Lock Expires?”
• Mortgage Rate Questions – When Do Mortgage Rates Change?
• Mortgage Questions Video – “How To Shop For A Mortgage Rate”?