The 2024 study: a historical modeled comparison
Polygon Research's 2024 Channel Study, announced August 28, 2024, used 2023 mortgage data and reported an estimated $10,662 average lower lifetime loan cost for broker-channel loans versus NONBANK retail loans under its reference loan assumptions. This is historical modeled group-level research, not a personalized estimate or guaranteed saving. Industry funding/support came from United Wholesale Mortgage (UWM), a wholesale lender, and Willow Canyon Advisors. Read the study and UWM's dated announcement in the official sources below.
Rate and upfront fees both matter
UWM's August 28, 2024 announcement reported 2023 conventional-purchase average rates of 6.58% for wholesale and 6.60% for retail, with upfront costs of 115 versus 148 basis points. Those are historical averages, not today's quotes. The $10,662 modeled lifetime figure does not come from a universal one-eighth-point rate advantage. Fees, rate, and reference assumptions all matter; a lifetime model may not reflect a borrower who sells or refinances sooner.
What the data cannot answer for one borrower
The Consumer Financial Protection Bureau describes HMDA data as the most comprehensive publicly available information about U.S. mortgage activity, while also noting that the dataset does not contain every credit-risk consideration used in loan approval and pricing. Historical channel averages cannot show today's available programs, final eligibility, rate-lock terms, service, or the complete cost of a specific offer.
- The study compared broker-channel loans with nonbank retail loans; it was not a quote comparison across every bank, credit union, broker, and lender.
- An average does not describe the property, credit profile, loan-to-value ratio, occupancy, program, state, or priorities of a particular borrower.
- Rates and costs change with the market, points, credits, lock period, and participating professional's available channels.
How to compare the offer in front of you
Ask for Loan Estimates with the same loan amount, program, term, occupancy, credit assumptions, points baseline, and rate-lock period. Compare the following together rather than choosing the lowest advertised rate:
- Interest rate sets interest charged on the balance and affects the monthly principal-and-interest payment. Compare the same fixed or adjustable structure.
- APR combines interest with certain loan costs into an annualized measure. It helps compare like loans but is not every closing cost or a calculation for your personal holding period.
- Discount points are an upfront payment for a lower rate; one point equals 1% of the loan amount. Ask how long the payment reduction takes to recover the extra upfront cost.
- Lender credits offset some closing costs, often in exchange for a higher rate. Compare the credit with the higher payments over your expected time in the loan.
- Compare origination, underwriting, processing, and other upfront fees without double-counting points or credits. Separate lender-controlled charges from third-party fees, prepaids, and escrow deposits.
- For your expected holding period, compare net upfront loan costs plus interest and applicable mortgage insurance paid during that time. If comparing total payments, also account for the remaining loan balance; principal repayment builds equity and is not simply an expense.
How consumers access wholesale pricing
Consumers generally access wholesale mortgage pricing through participating licensed mortgage brokers and lender partners—not by contacting a wholesale lender directly. The professional prices an eligible scenario through the channels available to that professional. Wholesale pricing can be competitive, but the channel label alone does not establish the best offer.
Where Lenny fits
Lenny compares disclosed or matched offers using the same scenario and explains the tradeoff among payment, APR, points, credits, lender-controlled costs, cash to close, and time. Lenny does not convert a historical average into a personal savings claim. A licensed mortgage professional confirms eligibility, final pricing, approval, and any rate lock.
What could change the answer?
- Current market pricing and the selected lock period.
- Loan purpose, program, credit profile, loan-to-value ratio, property, occupancy, and state.
- The participating professional's available wholesale and other matched sources.
- Points, lender credits, lender-confirmed fees, cash-to-close needs, and expected time in the mortgage.