Depository lender

Question 1

What is a depository lender?

Answer 1

Lenders who originate new mortgage loans

Depository lenders hold deposits and use them to fund loans.

Question 2

What are the three major kinds of depository lenders?

Answer 2

• savings associations
• commercial banks
• credit unions

These institutions differ in their structure and services offered.

Question 3

Savings associations prefer to make ____ ______ residential mortgages and ___ ____ loan.

Answer 3

conventional residential mortgages and home equity loans

Savings associations focus on long-term residential lending.

Question 4

What do commercial banks specialize in?

Answer 4

construction loans

They provide financing for building projects and related activities.

Question 5

Credit unions offer ____ financing and ____ _____ loans to members.

Answer 5

residential financing and home improvement loans

Credit unions typically provide more favorable rates to their members.