financial institution or institutional investor that invests its own funds, or funds under management, in corporate equities and debt securities, government securities, residential mortgages, commercial real estate, or mortgage backed securities. Frequently, these investors buy mortgage loans, either whole loans or pools of loans packaged as securities, and also new securities offerings sold through private placement. In the secondary mortgage market, savings and loan associations, savings banks, life insurance companies, commercial banks, and pension funds act as institutional lenders.
financial intermediary who invests in loans and other securities on behalf of depositors or customers. Lending and investment activities are regulated by laws to limit risk. Institutional lenders are a prime source of bond purchases and real estate loans. Many organizations, such as Savings And Loan Association and commercial banks, originate loans directly; others, such as insurance companies, are active in the secondary market.
financial intermediaries who invest in loans and other securities on behalf of their depositors or customers; lending and investment activities are regulated by laws to limit risk.
Example: Institutional lenders are a prime source of real estate loans. Many organizations, such as Savings and Loan associations and commercial banks, originate loans directly; others, such as insurance companies, lend through mortgage brokers.
