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
editThe mortgage broker originates the loan; however, the funding of the loan as well as the decision on the creditworthiness of the loan is handled by the wholesale lender.[2] The name of the wholesale lender is typically appears on the loan documents, while the broker acts as an agent for the lender and collects a fee.[3] 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[4] going to the broker.
References
edit- ^ "Types of Mortgage Lenders - The Truth About Mortgage.com". www.thetruthaboutmortgage.com. 24 June 2013. Retrieved 24 January 2018.
- ^ "What is Wholesale Lending?". cmgfi.com. 27 October 2014. Retrieved 24 January 2018.
- ^ "Understanding Different Types of Mortgage Lenders". mortgageloan.com. 7 April 2010. Retrieved 24 January 2018.
- ^ "What Is a Wholesale Mortgage Loan?". thenest.com. Retrieved 24 January 2018.
External links
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