A mortgage corporation is a financial business that is focused on providing and managing mortgages on various types of real estate. Rather than offering a wide range of financial services, this type of direct lender will typically aid clients in evaluating various mortgage options when buying a new home, or refinancing for an existing mortgage. Some corporations of this type will also aid customers in comparing various types of home equity loans, and establishing lines of credit based on the equity current held in a given property. A mortgage corporation may specialize in residential or commercial mortgage options, or provide mortgage support to both types of customers.
The operating structure of a mortgage corporation may take on several different forms. Some of these corporations function more like agents or brokers for several different lenders. In this scenario, loan officers help customers evaluate their needs, as well as assess their current financial circumstances and credit rating. From there, the officers seek to match clients with one or more of the mortgage offerings provided by various lenders. In return for these efforts, the mortgage corporation collect a fee that is paid either by the client or by the institution that ultimately grants the mortgage loan.
There are also instances in which a mortgage corporation is a subsidiary or sister company to a larger banking corporation. When this is the case, the corporation usually acts as an exclusive agent for the mortgage options offered by that bank. Here, the same basic strategy is employed. The credit rating and general financial situation of the prospective borrower is assessed, and if deemed creditworthy, the loan agent recommends one or more of the mortgage options provided by the sister bank.
In all its incarnations, the mortgage corporation seeks to educate business and residential customers on their options, provide assistance in arranging financial affairs so that the best possible mortgage can be obtained, and in general ensure that the relationship between the lender and the debtor is mutually beneficial. As part of this process, the corporation must comply with lending standards and regulations that apply in any geographical location where it does business. This means international corporations must comply with the regulations set in each nation where it is established, including paying corporation tax and making corporation filings in accordance with those laws. Failure to comply with governmental regulations can cause the corporation to incur fines or possibly lose the right to do business within that country.
