Wholesale mortgage banking refers to the process of originating and selling mortgages to large financial institutions, such as banks and mortgage companies. Wholesale lenders offer loans directly to mortgage brokers and correspondents, who then sell the loans to investors. Wholesale lending typically involves lower loan amounts and a faster loan approval process, with less focus on the creditworthiness of the individual borrower.
Retail mortgage banking, on the other hand, involves originating and selling mortgages directly to individual borrowers through retail branches or loan officers. Retail lenders have direct contact with the borrowers, allowing for a more personal and customized loan experience. Retail lending typically involves larger loan amounts and a more thorough review of the borrower's creditworthiness, employment history, and financial stability.
In summary, the main difference between wholesale and retail mortgage banking is the target audience and the level of interaction with the borrower.
Democratizing the Language of Mortgage Banking. Asking the right question and giving you a great concise answer via request, review and edit of research responses from ChatGPT Jan 30 Version.
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