 Sam
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Joined: 21 May 2005
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Location: CALIFORNIA
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 Posted: Sat Jun 12, 2004 2:19 am Post subject: Submortgage |
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Submortgage is that type of arrangement in which a mortgage lender guarantees a mortgage he or she is holding as security for his/her own loan.
Features of Submortgage are as following:
- Here a mortgagee borrows money from a third party and pledges a mortgage he/she is holding as collateral for borrowed fund.
- It involves a third party (another mortgage lender) for its functioning.
- The original lender does not pledge his own property here, but uses borrower's property for getting loan for his personal use.
- The mortgage broker employs sub mortgage brokers. These sub mortgage brokers carry out mortgage broking activity on behalf of the mortgage broker.
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