Wholesale Lending refers to the practice of providing loans to mortgage brokers or other financial institutions who then work directly with borrowers. This process is commonly known as wholesale lending or wholesale mortgage. In this arrangement, the lender extends credit to the mortgage broker’s financial institution, an intermediary between the lender and the borrower. mortgage broker financial institution handles the loan application, underwriting, and closing processes, while the lender provides the funds for the loan. This practice allows lenders to reach a wider and utilize brokers’ expertise in loans.