_______________ provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes, whereas ______________ originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors.

Question

Quizplus · Accepted Answer

Finance companies provide loans directly to consumers and businesses or aid individuals in obtaining financing of durable goods and homes, while mortgage banking firms originate mortgage loans on homes and other real property by bringing together borrowers and institutional investors. The other options are incorrect because thrift institutions and savings and loans are essentially the same thing, and while they do provide loans, they primarily focus on accepting deposits and making loans for residential mortgages. Finance companies also provide more varied types of loans than thrift institutions, such as personal loans and auto loans.

_______________ Provide Loans Directly to Consumers and Businesses or Aid