Banks, Credit Unions, Mortgage Banks

I’ve been asked a lot over the last 6 months: “What makes Fairway different from anything other mortgage lender?” Being newer to the company, I haven’t always had a great answer to that question. Why not go through a bank? Why not talk to a broker? What does differentiate Fairway from anyone else? Well, like I’ve been taught through my upbringing and through school, if I don’t know the answer to a question, it’s always a good start to ask someone more knowledgeable. So that’s what I did. I asked a coworker who has been in the lending world for almost 15 years and worked at Fairway for over 6 years. His name is Bryan Gorder, and this is what he had to say:

If you Google the word Hybrid, some of the top matches include: SUVs, cars, animals, weeds, and even mattresses. How about this, have you heard of a Hybrid lender?

Chances are you have but just didn’t realize it. Let’s start with the definition of hybrid: a thing made by combining two different elements; a mixture.

When you think of lending, what two different sources do you think of first? Maybe Banks and Mortgage Brokers?

How are the two of these different? What are their pros and cons?

For starters, a bank represents strength. As an institution with its own money, it controls the transactions in which it engages in. Sounds great, right? Yes, but, the same walls that represent that internal strength of independence are also restrictive since they are only able to offer loan products that sit within those specific walls. If a special need is required for a loan, a particular bank may not be able to offer that element.

How is this remedied? Enter the mortgage broker. A mortgage broker has the flexibility to shop for a consumer across multiple product offerings available in the lending arena. This allows for the ultimate range of options that can help a consumer find the perfect product made for them. Alas this can have its shortcomings as well. First, not having the independent presence of the banks, the broker doesn’t have the same control over the transaction that a bank has. The broker is dependent on its wholesale partner to underwrite, approve, and fund its mortgage loans. If one option doesn’t work, the loan would need to be packaged again and sent to another wholesale lending partner for review again.

This may cause pause for selecting either a bank or a mortgage broker to satisfy your home lending needs. What if I told you that you can have both? It would seem to be the perfect fit.

Enter the Mortgage Bank. Much like a typical depository bank that does mortgages and controls the transaction, a Mortgage Bank also controls the transaction. A Mortgage Bank will underwrite, approve, and fund its loans within its company divisions. But where this gets even better is that like a broker it has multiple offerings to provide and meet its clients’ specific needs. Because every client has a unique scenario, multiple loan options must be available. A Mortgage Bank has access to these different options through the investors it brings into its lending platform. If one program doesn’t work, the Mortgage Banker needs only to look at other offerings available to them, avoiding repackaging the loan and starting over from square one.

Now you have one entity, the Mortgage Bank that offers both strength and flexibility. Fairway Independent Mortgage Corporation is a prime example of such a Mortgage Bank. The perfect hybrid. And the perfect option for those in need of both reliability and flexibility. If you or anyone you know wants to learn more about buying, selling, or refinancing a home and don’t know where to turn, don’t hesitate to call or email any of our loan officers here at Fairway. They’d be more than happy to help!