and brokers Mortgage bankers are companies or individuals that originate mortgage loans, sell them to other investors, service the monthly payments, and may act as agents to dispense funds for taxes and insurance. Mortgage brokers present homebuyers with loans from a variety of loan sources. Their income comes from the lender making the loan, just like with any other bank. Because they can tap a variety of lenders, they can shop on behalf of the borrower and achieve the best available terms. Despite legislation that could favor major banks, mortgage bankers and brokers keep the market competitive so the largest lenders must continue to compete on price and service. According to Don Burnette of Brightgreen Homeloans in Port Orange, Florida, "The mortgage banker and broker conduit is vital to maintain competitive balance in the mortgage industry. Without it, the largest lenders would be able to unduly influence rates and pricing, potentially hurting the consumer. Competition drives every organization in this industry to constantly improve on their performance, and the consumer is the winner in this scenario." Life insurance companies Life insurance companies are another source of financial assistance. These companies lend on real estate as one form of investment and adjust their portfolios from time to time to reflect changing economic conditions. Individuals seeking a loan from an insurance company can deal directly with a local branch office or with a local real estate broker who acts as loan correspondent for one or more insurance companies. Credit unions These cooperative financial institutions are organized by people who share a common bond—for example, employees of a company, labor union, or religious group. Some credit unions offer home loans in addition to other financial services. Federally supported agencies Under certain conditions and fund limitations, the Veterans Administration (VA) makes direct loans to creditworthy veterans in housing credit shortage areas designated by the VA's administrator. Such areas are generally rural and small cities and towns not near the metropolitan or commuting areas of large cities—areas where GI loans from private institutions are not available. The federally supported agencies referred to here do not include the so-called second-layer lenders who enter the scene after the mortgage is arranged between the lending institution and the individual home buyer. Real estate investment trusts Real estate investment trusts (REITs), which began when the Real Estate Investment Trust Act became effective on January 1, 1961, are available. REITs,