Mortgage Lenders, Correspondent Lenders and Brokers
Three types of mortgage loan licenses are issued to distinguish between mortgage loan licensees: mortgage lenders, correspondent lenders and brokers. Mortgage lenders grant loans. Mortgage correspondent lenders close loans in their name; however, they are funded by another person and are not held for more than ninety days. Mortgage brokers arrange loans which are made by lenders or correspondent lenders.
There were 5,175 mortgage loan licensees on December 31, 2007. As of December 31, 2008, there were 2,175 licensees. The decrease in licensees was not only due to the closure of many companies, but the combining of first and secondary mortgage licensees into one single license.
During 2008, 272 first mortgage exams were conducted for compliance with state statutes along with Federal Regulation Z (the Truth in Lending Act).