Wholesale mortgage lenders

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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.

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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.

References

  1. ↑ "Types of Mortgage Lenders - The Truth About Mortgage.com". www.thetruthaboutmortgage.com. 24 June 2013. Retrieved 24 January 2018.
  2. ↑ "Guide Mortgage Licensing". 2022-08-08. Retrieved 2025-11-03.
  3. ↑ "What is Wholesale Lending?". cmgfi.com. 27 October 2014. Retrieved 24 January 2018.
  4. ↑ "Understanding Different Types of Mortgage Lenders". mortgageloan.com. 7 April 2010. Retrieved 24 January 2018.
  5. ↑ "What Is a Wholesale Mortgage Loan?". thenest.com. Retrieved 24 January 2018.
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