What type of lenders only make loans through mortgage brokers and don't deal directly with consumers?

Wholesale lenders are financial institutions that provide loans exclusively through mortgage brokers rather than engaging directly with consumers. These lenders focus on funding loans and selling them to other entities or investors. By using brokers, wholesale lenders can reach a broader clientele without the overhead costs associated with maintaining a direct-to-consumer sales force. Mortgage brokers act as intermediaries, helping consumers navigate the loan options available to them from various wholesale lenders.

This business model allows wholesale lenders to specialize in providing competitive pricing and rapid underwriting processes, benefiting both the mortgage brokers and their clients. They typically offer better rates for borrowers as they do not incur the costs associated with retail lending practices, making them an attractive choice for brokers seeking to find the best loans for their customers.