• Mortgage holding companies's main function is to invest in residential, commercial and multifamily loans. They also provide services to lenders with regard to assets and credit risk, and may be involved in the management of real estate transactions. Some mortgage holding companies also offer mortgage servicing products as well as mortgage management.
  
  

Asset Management

• The asset management department within a mortgage holding company measures credit risk on residential loans by assessing a variety of factors. This division screens potential borrowers and keeps an eye on acquisitions to limit asset risk. It also make investments in mortgage loans and securities backed by mortgages. Employees in the asset management area of a mortgage holding company gather information about a loan, as well as the property, in order to make a complete evaluation of the asset. They compile borrower information to develop strategies for exit plans for unsuccessful loans.
  
  

Regulatory Consulting

• Mortgage holding companies provide financial institutions with regulatory consulting services to support company growth and profitability. This consulting may include creating management services and solutions. The client company's needs are assessed to provide workable solutions, and the mortgage holding company may provide services such as technology analysis, contract liability and forensic review. Financial institutions that benefit from these services include banks and hedge funds. Consulting is sometimes provided through the mortgage holding company's affiliates and subsidiaries.
  
  

Loss Mitigation

• Mortgage holding companies provide loss mitigation through the use of plans designed to limit a lender's loss. One function of a loss mitigation division is to analyze a borrower's ability to retain property by creating a portfolio containing borrower information, which helps the bank decide whether the homeowner can continue to pay his mortgage. If the mortgage holding company's loss mitigation division concludes that the homeowner can continue to make payments, loss mitigation services may also include refinancing, loan modification approval and preparation of appropriate documents. In the event that the division determines that the borrower is unable to keep the home, loss mitigation can provide short sale approval, streamlined short sales and "cash for keys" services to speed up or avoid the foreclosure process.