Which option is not considered an institutional lender?

The correct answer is C, as a mortgage company is typically not classified as an institutional lender in the same way that commercial banks, credit unions, and insurance companies are.

Institutional lenders are generally large, established organizations that provide loans as a primary function of their business. They have significant capital resources and are regulated by government entities. Commercial banks, credit unions, and insurance companies fit this description because they engage in standardized lending practices, offer various financial products, and are backed by government insurance or regulation. For example, commercial banks provide a range of financial services and are often involved in mortgage lending as one of their core functions. Similarly, credit unions, being member-owned financial cooperatives, also provide loans but to their members, making them institutional in nature.

In contrast, mortgage companies often focus specifically on mortgage lending but may not have the same level of regulation or institutional backing as the other entities mentioned. They can operate independently and may rely on wholesale funding or the secondary mortgage market rather than having a broad base of capital. Thus, they do not fit the traditional definition of institutional lenders as neatly as the other options.