What is the difference between a bank and a mortgage lender?

The difference between a bank and a mortgage lender lies in the services they provide and the types of loans they offer. A bank is a business that typically provides a wide range of services such as deposits, savings, loans, and investments. Banks provide loans such as auto, personal, and business loans. When it comes to residential mortgages, banks generally only originate and fund their own loans. A mortgage lender, on the other hand, typically specializes in originating and funding mortgages. These lenders have relationships with other banks and lending institutions that purchase the mortgage from them. This allows the mortgage lender to have a larger selection of loan programs to offer their clients. A bank can be a mortgage lender, but a mortgage lender is not necessarily a bank. Banks provide other financial services, whereas mortgage lenders focus primarily on residential mortgages. Banks are regulated by federal and state banking laws, while mortgage lenders must comply with the Consumer Financial Protection Bureau (CFPB) and other state and federal laws. In Oregon, all mortgage lenders must be licensed with the Oregon Department of Consumer and Business Services Division of Financial Regulation, and must adhere to all applicable banking laws and regulations. Banks and mortgage lenders both play an important role in helping people to purchase homes and manage their finances, but it is important to remember the differences between the two.

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What is the difference between a bank and a mortgage lender?

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