The Real Estate Encyclopedia
What is a Portfolio Lender?
Category - Mortgage Questions - Mortgage Loans FAQ's

A portfolio lender is a financial institution (e.g. bank or private party) which is lending their own money or pool of investors money. They are originating loans for themselves and their own investment portfolio, and not on behalf of any other party. Neither do they intend to immediately sell that loan to another party or investor on the secondary markets. Because they are investing for their own book of business, they are called a portfolio lender.  These lenders therefor loan the money based on their own criteria and rules, which may depending on circumstances be more lenient or more stringent, depending on their objectives.

e.g. UBOC specializes in the JUMBO niche market but has very strict rules to qualify for a loan. Their book is subsequently very healty and they are little affected by the mortgage meltdown of 2008.

Mortgage Questions - Mortgage Loans FAQ's
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