A lender that closes more than 5 loans annually is classified as what?

A lender that closes more than five loans annually is classified as a creditor. In the context of mortgage lending, a creditor is defined as an entity that extends credit to borrowers and is involved in the lending process by providing the necessary financial resources for loans. This classification is crucial because creditors are subject to various regulations and must comply with specific laws that govern lending practices to protect consumers.

This distinction emphasizes the lender's active role in the loan-making process, as opposed to other terms which may apply to parties that facilitate or refer loans but do not themselves provide the actual funding. Being classified as a creditor aligns with the legal definitions set forth under the Truth in Lending Act and other related statutes, highlighting the importance of accountability and transparency in the lending industry.