Alabama Real Estate Practice Exam – Practice Test & Study Guide

Commercial banks, savings and loans, and credit unions are the primary players in the mortgage industry. They are responsible for originating and underwriting mortgages for borrowers. Insurance companies may also invest in mortgages as part of their portfolio, but they do not write or originate them directly. The federal government does not engage in direct mortgage lending, but rather provides support and regulations for the mortgage market. Private investors may purchase mortgages on the secondary market, but they are not involved in writing mortgages in the primary market.