A wholesale mortgage lender is a bank or other lending institution that funds and sometimes services mortgage loans, but uses independent mortgage brokers for the initial interaction with the client,[1] including the application process.
Description
The mortgage broker originates the loan;[2] however, the funding of the loan as well as the decision on the creditworthiness of the loan is handled by the wholesale lender.[3] The name of the wholesale lender typically appears on the loan documents, while the broker acts as an agent for the lender and collects a fee.[4] Broker fees are sometimes collected by adding onto the rate offered by the wholesale lender, with the difference between the broker rate and the lower lender rate[5] going to the broker.
External links
References
- Types of Mortgage Lenders - The Truth About Mortgage.com www.thetruthaboutmortgage.com, 24 June 2013, retrieved 24 January 2018^
- Guide Mortgage Licensing 2022-08-08, retrieved 2025-11-03^
- What is Wholesale Lending? cmgfi.com, 27 October 2014, retrieved 24 January 2018