Which financial institution primarily focuses on mortgage lending?

The savings and loan association is a financial institution that primarily focuses on mortgage lending. This type of institution was established specifically to promote home ownership by providing residential mortgages. Savings and loan associations accept deposits from customers and use those funds to provide loans, mainly for purchasing and refinancing homes. They often offer favorable terms for mortgages, making them an attractive option for individuals looking to buy a home.

In contrast, investment banks generally engage in large-scale investment and capital-raising activities, including underwriting stocks and bonds, but do not primarily lend for mortgages. Credit unions, while they may offer mortgage products, are member-owned and focus on a broader range of banking services for their members, not exclusively on mortgages. Hedge funds are investment funds that pool capital to invest in various assets, typically focused on higher-risk investments and not on providing traditional mortgage lending services. Thus, the focus of savings and loan associations on home financing makes them the primary institutions for mortgage lending.