Q: Is it permissible to take a mortgage from a Jewish mortgage broker or a Jewish-owned mortgage company?

A: Although a Jew may not lend to another Jew with interest, it is permissible for him to serve as a loan officer in a non-Jewish bank, since it is clear that the money is not his and he is serving only as an agent. Similarly, it is permissible to take a mortgage through a Jewish mortgage broker if the mortgage capital is provided by a non-Jewish bank (or a Jewish bank with a heter iska), and the broker is serving only as a mediator. This is permissible even if the broker takes a fee for his services (Y.D. 163:23-24; Shach 71).

Mortgage companies, on the other hand, often grant the loan from their own capital and then sell the mortgage to a bank. In this case, it is not permissible to take a loan from a Jewish-owned mortgage company unless they have a heter iska, because the loan is initially granted by the Jewish-owned company with a stipulation of interest, and because they maintain the loan for a short time. A person considering taking a loan from a mortgage company should first verify its ownership (The Laws of Rabbis, R’ Reisman, 13:24-25). If it is difficult to obtain this information, a competent Rav should be consulted.