Finance:Wholesale mortgage lenders
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; 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
- ↑ "Types of Mortgage Lenders - The Truth About Mortgage.com". 24 June 2013. http://www.thetruthaboutmortgage.com/types-of-mortgage-lenders/. Retrieved 24 January 2018.
- ↑ "What is Wholesale Lending?". 27 October 2014. http://www.cmgfi.com/news/read/what-is-wholesale-lending?channel=corporate. Retrieved 24 January 2018.
- ↑ "Understanding Different Types of Mortgage Lenders". 7 April 2010. https://www.mortgageloan.com/understanding-different-types-mortgage-lenders. Retrieved 24 January 2018.
- ↑ "What Is a Wholesale Mortgage Loan?". https://budgeting.thenest.com/wholesale-mortgage-loan-32255.html. Retrieved 24 January 2018.
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