Not FDIC insured?

[thebear22]

So I'm now under contract to purchase a house (thanks myfico!) and I'm looking at different places to get a home loan.  I'm already pre-approved through Wellsfargo for an FHA loan, but my realtor recommended SWBC Mortgage.  The gave me a GFE that seems better than the Wellsfago one, so I'd like to use them.  However, I don't think they are FDIC insured.  Is this something that is normal?  And if so is it a big deal?  I have no experience with that sort of thing, so any help is greatly appreciated.  Thanks!

[Anonymous]

All I can say is why do you care if they are FDIC insured or not?  You are borrowing money from the them.   If it moves to close and they loan the money who cares.   If they go under after you get the loan don't worry, someone will still collect on your debt.

[Anonymous]

FDIC insured is only for deposit accounts, like checking, savings, CD's etc.  There is no FDIC insurance for investments, mortgages, and other kind of loans.  So if SWBC Mortgage only deals in mortgages they wouldn't be FDIC insured because they're loaning money out.

[thebear22]

Ahh yes, I don't know what I was thinking, sorry about that.  This home buying stuff tends to fry your brain I've noticed.  Thanks for setting me straight.