Wholesale Mortgage Lender

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Wholesale Mortgage Lenders

A wholesale mortgage lender is, by definition, a person who purchases a loan from someone, for the acquisition of the servicing rights. These rights included the right to collect mortgage payments and the right to collect interest and principle on the mortgage.  
Most wholesale mortgage lenders work through mortgage brokers.  This can work to your advantage in some ways.  However, it really depends on how much the mortgage broker charges.  Because the mortgage broker works independently and is more or less, contracted by the wholesale mortgage lender they do not receive payments or wages from the lender.  Instead they have a flat fee or charge a certain percentage of the total cost or profit.
Most of the time you won't have any contact with the mortgage lander, you will work with the broker.  This again can be good because the lender will have a more financial background and there is no guarantee that they will know much about homes, whereas a mortgage broker should know more and will in most cases, at least when it comes to property and houses.  This is good because there is more to buying a house than just signing mortgage papers.  It really helps to understand every aspect when buying a house.


Now there are some disadvantages as well.  Because there is only the broker and the wholesale lander there will be no loan professionals so if you are buying, you should read the agreement make sure it makes sense because problems can, and likely will, occur and the broker may not  see them coming or even notice them after something has gone wrong.  These can be things like overlapping payments, over paying, under paying, anticipating a missing payment or two or perhaps adjusting the payments as well as the effect of extra payments on the mortgage as a whole.  But they are most certainly not limited to that.  In addition to all of that, wholesale lenders tend to buy the rights to loans to make a profit, and in this market, that means being tough, and they don't necessarily have to worry about their business reputation if they are not in the commercial mortgage business.

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