Which statement is true about customers and third parties?

• A. All customers are third parties
• B. All third parties are customers
• C. Not all third parties are customers
• D. There is no relationship

Answer: (C)

In real estate finance, a customer is someone who has a direct lending relationship with the lender—the borrower who is using the lender’s financial services. A third party, on the other hand, is someone who helps or participates in the transaction but does not itself borrow from the lender. Examples of third parties include appraisers, title companies, and real estate agents.

Since many of these helpers don’t have a loan with the lender, they aren’t customers. Some third parties could be customers if they also have their own loan with the lender, but that isn’t the case for all third parties. Therefore, the true statement is that not all third parties are customers.