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

A bank and a mortgage lender are both financial institutions, but they have different functions. A bank is a financial institution that provides services such as savings accounts, checking accounts, loans, and investments. Banks use deposits from customers to make loans, which earns them a profit. A mortgage lender, on the other hand, is a specific type of financial institution that specializes in providing loans to individuals for the purchase of a house or other real estate property. Mortgage lenders provide both fixed and adjustable rate loans, as well as programs such as FHA loans. Generally, mortgage lenders act as representatives of the lender, and make sure that the loan terms are followed. In Washington, banks are subject to the banking laws and regulations of the State of Washington, while mortgage lenders must abide by both state and federal laws. These laws are in place to protect lenders and borrowers alike. In conclusion, banks and mortgage lenders are both important financial institutions, but they have different functions. Banks provide a variety of services to their customers, while mortgage lenders specialize in offering loans to buy real estate. Both must adhere to the applicable laws and regulations set out by the state and federal governments.

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