Get Wholesale Submission Form - Banc Home Loans

A correspondent lender is a lender that funds loans in its own name but sells the loan to a direct lender, which then services the loan. Correspondent lenders act as extensions for larger lenders and can also sell loans on the secondary market.

A wholesale lender works via a third party who communicates with the borrower, while a correspondent lender does deal directly with the borrower.

Key takeaways. A wholesale mortgage lender is an institution that funds mortgages and offers them through third parties, such as a bank, credit union or mortgage broker. Wholesale mortgage lending requires the borrower to work with a middleman instead of the lender.

Wholesale lending involves providing loans to financial institutions, such as banks or credit unions, rather than directly to consumers. These financial institutions then distribute the funds to their customers, including businesses and individuals.

Key takeaways. A wholesale mortgage lender is an institution that funds mortgages and offers them through third parties, such as a bank, credit union or mortgage broker. Wholesale mortgage lending requires the borrower to work with a middleman instead of the lender.

Warehouse lenders are similar to wholesale lenders, but they lend the money directly to the institution that is originating the loan, not the customer. They provide short-term funding for intermediaries like mortgage bankers or small mortgage banks. Usually, the loans that warehouse lenders make are short-term.

A correspondent lender will take care of all of the various functions connected to your mortgage's origination, such as underwriting and funding. Mortgage brokers, meanwhile, only help to collect documents from their clients and find the right loans; they don't do any underwriting or funding themselves.

Wholesale mortgage prices are those quoted by wholesale lenders to their clients -- mortgage brokers and smaller ("correspondent") lenders. (I will use the word "client" to cover both.) Clients mark up these prices to offer retail prices to borrowers.