Services Provided by Mortgage Companies

Mortgage companies offer consumers a wide variety of services and mortgage products, and the mortgage company you choose will depend on your own specific needs. Still other companies in the mortgage industry don’t work directly with the public; rather, they work behind the scenes servicing loans for other mortgage companies, or in the case of Fannie Mae and Freddie Mac, buying mortgage loans from other mortgage companies.

A mortgage company can be a valuable source of information about mortgage rates and trends, advice on how to improve one’s credit, and details about fraudulent or unscrupulous practices. On the latter front, one must be especially cautious when selecting a mortgage service, to avoid a disservice. Mortgage financing for residential homes is by far the biggest segment of the mortgage industry, accounting for $7.1 trillion dollars in total holdings in 2003. During the same period, outstanding mortgages for apartment buildings totaled $544 billion; commercial mortgages totaled $1.5 trillion, and farm mortgages totaled $132 billion.

One of the most valuable services offered by mortgage brokers is allowing consumers to easily compare rates and fees between several lenders; in particular, Internet-based services bring unparalleled convenience to the mortgage marketplace.

In addition to home loans, a mortgage company may also provide mortgage products that include mortgage refinancing, cash-out loans, debt consolidation, or reverse mortgages, designed to provide senior citizens with expendable cash while still allowing them to keep their homes. And because of the influence of the secondary market, dominated by Fannie Mae and Freddie Mac, mortgage companies are increasingly able to service a much broader sector of the public, including moderate- and low-income households which, prior to the inception of these institutions, would be shut out of the homebuyer’s dream.