What is the purpose of Savings and Loan associations?

The primary purpose of Savings and Loan associations is to finance mortgages. These institutions specialize in accepting savings deposits and providing home loans to their members and customers. They emerged initially to promote home ownership and provide easily accessible funding for individuals looking to purchase homes. By focusing on residential mortgages, Savings and Loan associations play a crucial role in the housing market, enabling families to acquire homes and thereby contributing to community development.

While insurance products, equity market investments, and business loans are essential components of the broader financial services landscape, they do not align with the foundational mission of Savings and Loan associations. Their focus has traditionally been on residential lending, making them a key player in facilitating mortgage financing.