Broker Vs. Retail Lender

Why most borrower choose Mortgage Broker Instead of Direct Lender or Retail Lender?

Statistics showing over 80% loans originated in US by Mortgage Broker in today’s market. The most important reason is Mortgage broker is Independent Wholesale Broker.

“Independent” means broker can choose as many as lenders broker have instead of one lender.

“Wholesale” means broker get wholesale pricing instead of retail pricing. Most time broker will bid lender from interest, fee, solution and service and bring more benefits to borrower.

Retail Lender

  • Have to be loyal to one lender and one lender’s product. Not able to shopping around from all lenders. So very restricted product line and limited choice.
  • Work 8am-5pm while broker normally work 7×24 when you contact them.

Mortgage Broker

  • Single Point of Touch for your loan saves your time and efforts for communication

  • Full time well-trained professionals who know better how to analysis and handle your loan

  • Strong motivation to help you get the best deal. Not binding in one lender only. You can choose from hundreds of lenders who has the best solutions for you loan.
  • Strong motivation to give you great service to gain future business.
  • It’s very hard for retail lender to recruit good mortgage agent because as independent broker, we can be more flexible in choosing product, more productive and have stronger motivation to treat the business as “Own” business.
  • Collect your document Only Once and reuse it anywhere

    • Different lender might have different pre-approval system, result from one lender might not re-usable with other lenders

    • You don’t want to spread your private financial information anywhere to any people unless you really close the loan with them

    • In case for some Bank Owned property might need pre-approval from specific direct lender, broker can cooperate with lender to save your time and effort

  • Run your Credit Score Only Once and reuse it anywhere

    • Broker Tri-merged Credit Bureau credit report is recognized and accepted national wide

    • Run too many credit reports might drop your credit score substantially

  • Better rate and brings more benefit for you. The following table is a simple illustration.




Lender/Loan Programs

Represent many lenders. Bring more choice, more options to borrower

Tie in in one lender and this lender’s program

Interest Rate

Better wholesale Rate

Retail Rate

Special Promotion/Bonus

More bonus for high volume mortgage broker, more promotions to switch broker’s borrower base from other lenders

 Maybe have promotion sometime but average rate is retail rate most likely.


One stop shop, more customized personal service. Very stable and reliable. Can be customer’s life-time adviser and consultant who really know your past and future  financial needs

 One time deal.

East to Contact

Work 7×24 full time. Easier, always talk to same person, no need to repeat story.

Work 8am-5pm only, normally 800# Number,  long waiting time. Many personnel change all the time.


Very knowledgeable, hands-in experience, better trained practically and able to handle difficult and complicated loans

Many bankers are short of experience to handle sophisticated scenario and not professional.


Paid by commission. Treat each customer as “Own” business. More motivated and more professional. Treat work as career and passion

Paid by Salary, less motivation. Treat work as job and “Company’s” business


More flexible, bring more benefits to borrower

Have to follow lender’s policy


Fast and easy, many broke work in weekends or holidays

Slow and fixed work time

Solution/ Package

Better solution and package

 Limited and restricted choice