Wholesale mortgage lenders work in conjunction with mortgage brokers who, in turn, act as loan officers. These ‘loan officers’ reduce their rates so that when the broker adds on his | her fee, the rate is either lower or about the same as one you would receive from a mortgage banker. The benefit of this situation is that you don’t need to go through a broker simply a wholesale lender.

Additional advantages of working with the wholesale Mortgage broker is that they are abreast of which lenders offer the best deals. Known as "hot points," wholesale brokers are able to discriminately pair the proper lender with his | her client, the borrower. As the wholesale broker works with both portfolio lenders and mortgage bankers, there tends to be a wide realm of choices so in the instance a loan is declined, it can be forwarded onto another lender for consideration.

In the simplest sense, mortgage brokers, also known as independent contractors, act as the middle-person who goes between the borrower and the actual money lender. At the closing on the property in question, the lender offers up the amount of money upon which has been agreed. In return, the lender receives a note stipulating the debt and intent to repay.

Lenders who provide the actual funds are referred to as wholesalers.

Lenders who facilitate all related functions of loan are known as "retail lenders". In contrast, lenders who work in consort with mortgage bankers are termed "wholesale lenders". A good number of large-sized corporate lenders, in addition to, retail also offer wholesale departments.

Divisions of Responsibility among Mortgage Professionals:
• Procure and Consult with Clients – performed by both retail lenders & mortgage brokers
• Receive and Review Applications – performed by both retail lenders & mortgage brokers
• Secure Terms of Loan Agreement –performed by both retail lenders & wholesale lenders
• Loan Facilitation- performed by both retail lenders & mortgage brokers
• Assess Risk of Loan via Underwriting – performed by both retail lenders & wholesale lenders
• Wrap-up and Finance Loan – performed by both retail lenders & wholesale lenders.