Question:

Wholesale Lender Definition

Answer:

A wholesale lender is a lender who has the funds for extending loans and employs mortgage brokers to find their loans. A large lending institution may have a retail and a wholesale lending division.

Wholesale lenders specialize in different type of loans. The following are examples of different wholesale lenders categories:

  • Subprime
  • Reverse mortgage
  • Alt-A
  • Manufactured homes
  • Commercial
  • Investment properties
  • Multi unit
  • Raw land, etc.

Wholesale lenders offer the best mortgage rates but a borrower usually works with a retail lender, correspondent lender or a mortgage broker. Thus, they have to pay the loan provider's fee which would be avoided if wholesale lender was directly contacted.

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Common misspellings: mortage and morgage