Which of the following is a characteristic of non-institutional lenders?

Non-institutional lenders are characterized primarily by their use of their own funds or funds from private investors to provide loans. This distinguishes them from institutional lenders, such as banks and credit unions, which are typically funded through customer deposits and are subject to regulatory oversight. Non-institutional lenders often include private individuals, mortgage brokers, or smaller lending entities that operate with a different model focused more on private capital rather than public funding.

These lenders are not bound by the same regulations as institutional lenders. They don’t accept deposits from the public, which is a significant factor in their operational model since it allows them more flexibility in terms of loan structure and terms. Additionally, while they might offer competitive lending options, they are not primarily focused on low-risk loans, as non-institutional lending can include higher risk opportunities, especially in markets with less stringent regulations.