A bank or mortgage company that offers home loans can be called a “mortgage lender”. There are eight different categories of primary mortgage lender.

These correspondents are mortgage lenders, mortgage brokers, wholesale mortgage lenders, direct lenders, portfolio lenders, mortgage bankers, online mortgage lenders, and sub-subprime lenders.

Here, the first three categories are described in detail.

• Correspondent Lenders:

Institution or organization that can authorize loans on behalf of mortgage lender called the correspondent lenders.

In other words, lenders corresponding agent or sponsor of several of the original lenders and loan closing. They are the people who took loans.

They are also used to credit lenders.

They are not mortgage loans for resale. Instead, they sell them separately. That’s how they differ from mortgage brokers and other lenders.

• Mortgage Broker:

Individual or organization which has arranged financing to borrowers through a portfolio lenders, mortgage credit institutions or other sources referred to as “mortgage broker”.

A broker, mortgage loans and to act as an intermediary between lender and borrower.

These brokers help borrowers to choose the appropriate loan program, complete loan applications, and find a lender who can fund the loan. They also help obtain a credit report, appraisal, etc.

• Wholesale Lenders:

Each institution that provides loans, mortgages and funds referred to as loan wholesalers. This service is also ready.

However, wholesale lenders do not deal directly with the borrower at the end of the retail market. In contrast, dealing with third parties who may be a mortgage broker.

A wholesale lender, which owns all or part of the mortgage called ‘loan portfolios. On the other hand, wholesale mortgage lenders that sell are “mortgage lending institutions.