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“Weeding through joint ventures” is a common phrase that can be used in a variety of different ways.

For example, there’s probably a good chance that you’re not aware of the many joint ventures that might be associated with or around your home loan transaction and how they impact you.

As a reminder, per a few online dictionaries, a joint venture is defined as “a cooperative business agreement or partnership between two or more parties that’s usually limited to a single enterprise and involves the sharing of resources, control, profits, and losses.”

But even after reading this definition, it’s still a bit cloudy, correct?

To help clear things up, let’s work in the reverse order, starting with your monthly mortgage payment.

If you currently have a home loan or if you’re in the process of getting one, then you likely or eventually will be making your monthly payment to what’s called a loan servicing agent.

Your loan servicing agent can be the same bank that you borrowed your money from or it can be a different entity who has an agreement with your home loan lender to collect your monthly payment.

Either way, it’s pretty much a given there’s a joint venture involved at this level that has the capacity to collect, store and mine a ton of information about you.

Furthermore, the bank that funded your home loan is almost certain to be involved with some sort of joint venture as well.

This part of your home loan transaction can be super hazy when it comes to joint ventures.

On one side, your lender might be a depository bank that takes your deposits and uses them to facilitate other customers’ home loans.

On the other side, your lender could be a non-depository bank that won’t accept your deposits because they use lines of credit from other banks to fund your home loan instead.

Yes, in several cases, there’s a blend between the two of them. However, just this structure alone carries numerous joint ventures twisted together that effectively fuel the housing industry.

Going deeper into this level, you’ll find that your lender or loan officer could also have a joint venture with an insurance company, a real estate brokerage or both.

You might discover additional joint venture layers between one insurance agency and another or between one real estate brokerage and another too.

No matter what, they’re all obligated to inform you upfront of these types of relationships.

Lastly, there are joint ventures in place at the time you start your home loan application with your lender. At this level, you might say they are “joint vultures” as there are various entities that cross-share your personal information at the highest level, which is through the three big credit agencies of TransUnion, Experian and Equifax.

Layered in between them are lead generation service providers and other third-party data sharing companies.

In summary, please pay attention to all the different joint ventures that could be circling your home loan application.

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Chris Salese can be reached at chris@delsurmortgage.com or 707-363-4439. He is a licensed California mortgage lender (LO NMLS #254469 — CA-DBO #254469 Corp NMLS #1850 Equal Housing Opportunity.

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