Home Purchase Loans
Who Participates in a Mortgage
One of the participants is the creditor:
- A creditor has the legal rights to the debt secured by the mortgage.
- Typically, a creditor makes a loan to the debtor that allows the creditor to purchase the desired property
- Creditors are:
- Banks
- Credit Unions
- Mortgage Bankers
- Insurers
- Etc.
Another participant is the debtor:
- Debtors have to meet the requirements of the mortgage that they purchase from the creditor.
- Allows the creditor to retain or build their credit score and more importantly keep the property that they have purchased
- Debtors are:
- Home-owners
- Landlords
- Businesses
Other participants that might be involved in your mortgage process:
- Lawyer
- Are not always required, but will help you through the complicated legal exchange.
- Mortgage Broker or Mortgage Specialist
- These people will help you fine the best mortgage loan and find a creditor that will fit your needs.
Dictionary
Mortgage
A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans. 
Mortgage Broker
A mortgage company that originates loans, joining the borrower and lender for a real estate loan, earning a placement fee.
Mortgagee
The lender in a mortgage agreement.
Mortgage Banker
A financial intermediary that originates or funds loans, collects payments, inspects the property, and forecloses if necessary. The main difference between a mortgage banker and a loan officer is a banker funds their own loans and sell them on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginny Mae.
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