According to the Federal Reserve, an increasing number of home loans are being done by non-bank lenders . . . independent mortgage companies, such as Quicken Loans, Loan Depot, and other large and small nondepository lenders.
Independent mortgage lenders tout their ability to complete transactions online, and in some cases the borrower may not even need to speak to a loan officer. They also claim to offer more flexibility in the types of loans they offer.
Banking institutions, on the other hand, may be able to offer better rates and closing costs than independent mortgage companies based on the length of account history and amount of holdings.
It's a good practice to shop around for the lender with the best fit for your unique situation.
To read about this in more detail: More Home Buyers Bypass Banks for Loans - Home buyers increasingly are turning to independent mortgage companies for their loans, not traditional banks. [NAR Daily News Magazine]
