Construction lenders specialize in providing construction loans, which are short-term loans used to finance the building or renovation of real estate projects. They differ from permanent lenders who provide long-term financing solutions once a project is completed.
The Mortgage Bankers Association (MBA) is a national association that represents the real estate finance industry. It provides a range of services including educational programs, professional certifications, advocacy, and research for mortgage bankers.
The primary mortgage market is where borrowers and lenders come together to originate mortgages. This market includes various institutional lenders such as savings and loan associations, banks, and mortgage bankers and brokers.
Servicing in real estate refers to the administration of a mortgage loan, encompassing activities such as billing, payment collection, and filing reports. This can also extend to loan analysis, default followup, and managing tax and insurance escrow accounts. Typically, mortgage bankers perform these tasks for a fee after the loans are sold to investors.
The practice of packaging numerous mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans.
