This refers to how banks get the money they eventually lend out to consumers. While "retail funding" comes from everyday people's savings accounts, comes from large institutions.

In this model, a wholesale lender provides mortgage funds at "wholesale" rates but does not work with the public directly. Instead, they partner with .

: The broker handles the customer service, collects your paperwork, and "shops" your loan to various wholesale lenders to find the best deal.

Wholesale loans can refer to a few different concepts depending on your perspective. It most often relates to , but it can also refer to how banks fund themselves or specialized business financing. 1. Wholesale Mortgage Lending (Most Common)

: Because wholesale lenders don't spend money on retail storefronts or massive advertising, they can often offer lower interest rates than traditional retail banks.

: Companies like United Wholesale Mortgage (UWM) and Pennymac are among the largest in the U.S.. 2. Wholesale Bank Funding