Retail: the consumer works directly with the lender
In a retail channel, the loan officer works for the institution offering the loan. The institution provides its available programs and pricing, makes or arranges the credit decision according to its process, and closes the mortgage in the applicable lender name.
Wholesale: a broker connects the consumer with a lender
A mortgage broker does not make the loan. The broker may seek options from multiple approved wholesale lenders and acts as a liaison between the consumer and the lender that ultimately funds or makes the loan. Consumers generally do not open accounts directly with wholesale mortgage lenders.
Correspondent: the originator generally closes and then sells
A correspondent lender generally closes the mortgage in its own name using its own funds or a warehouse facility, then sells the loan to an acquiring lender or investor. Delegated authority, funding arrangements, servicing, and delivery structures vary, so the exact roles should be confirmed for the transaction.
One company may participate in more than one channel
Channel labels describe the transaction structure, not necessarily a permanent identity for every institution. Some organizations operate retail, wholesale, correspondent, or hybrid businesses. Consumers should focus on the lender-confirmed terms, service responsibilities, licensing, and the complete cost of the offer.
What could change the answer?
- Whether an institution is acting as creditor, broker, correspondent, or another role in the transaction.
- The approved lenders and programs available through the professional.
- Funding, underwriting, lock, closing, and servicing responsibilities.
- The rate, APR, points, credits, lender-controlled costs, and consumer timeline.