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

The primary difference between a bank and a mortgage lender is that a bank is the owner and operator of the loan, while a mortgage lender simply lends the money. A bank processes all aspects of a loan, including loan approval, underwriting, loan payments, and collections. A mortgage lender, on the other hand, does not typically handle loan payments or collateral. Banks are regulated by federal and state laws, including the Banking Law of Kansas. These laws are mainly focused on regulating the services that banks provide, such as consumer banking, commercial banking, and mortgage lending. Banks in Kansas must obtain a charter from the state in order to operate and must adhere to state laws. Banks also have to have a certain amount of capital and reserves that must be maintained by the state. Mortgage lenders, on the other hand, are not regulated by the Banking Law of Kansas. They operate only in the secondary market and do not handle loan approvals or payments. While mortgage lenders do have certain requirements that must be met, their focus is mainly on making a profit from the loan origination. They offer a variety of loan products and services. In summary, the difference between banks and mortgage lenders in Kansas is that banks are regulated by the Banking Law of Kansas and are responsible for loan approvals and payments, while mortgage lenders are not regulated and only operate in the secondary market. Banks provide a variety of loan products and services, while mortgage lenders focus on profit from the loan originations.

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