Which financial institution is tasked with making loans primarily for home mortgages?

Savings and loan associations, often referred to as thrifts, are specifically designed to focus on accepting savings deposits and making loans, primarily for home mortgages. Established to promote homeownership, these institutions typically offer lower interest rates on mortgages compared to other financial entities, making them a popular choice for individuals looking to purchase homes.

While commercial banks also provide home loans, their broader range of services often includes business and consumer loans, which means their role isn't as specialized as that of savings and loan associations specifically catering to residential mortgages. Payday lenders, on the other hand, focus on short-term, high-interest loans and are not involved in long-term home mortgage lending. Credit unions may also offer home loans, but their primary purpose is to serve their members with various financial services, and they do not exclusively focus on mortgages like savings and loan associations do.

Thus, savings and loan associations are distinguished by their dedicated service to home mortgage lending, making them the correct answer.