What is a direct lender?


Borrowers would like to know what is a direct lender so as to distinguish them from brokers. A direct lender can be everyone who funds their own loans and does not use a middleman in dealing with homeowners. A direct lender can be a very small, or a very big lender. Everyone who utilizes their own line of credit to extend credit to borrowers is a direct lender.

Direct lenders can fit into the description of portfolio lenders and mortgage bankers and those usually have retail divisions to serve applicants.

It is difficult to know right away who is a direct lender or a mortgage broker, since mortgage brokers can always arrange paperwork as if they fund loans in their name. Basically, anyone who is not a broker would be a direct lender. Direct lenders will vary from the biggest ones - portfolio lenders, banks and savings & loans, to unions to small lending companies utilizing warehouse lines of credit, to correspondent lenders.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: