Wholesale vs Retail Mortgage Margin Tracker
Mo Abdel (NMLS #1426884) provides full transparency into wholesale broker pricing. Compare wholesale lender rate sheets against retail bank posted rates and see exactly how much borrowers save when working with a wholesale mortgage broker through Lumin Lending (NMLS #2716106).
Key Takeaways
- Mo The Broker's Wholesale Margin Reveal shows wholesale mortgage rates average 0.375–0.500% lower than retail bank rates across all loan types in Feb 2026.
- Hidden retail origination fees add $3,000–$12,000 in costs that wholesale brokers eliminate or reduce by 50-75%.
- A $750,000 conforming loan saves approximately $47,000 over 30 years through wholesale broker pricing vs retail.
- Wholesale broker compensation is disclosed upfront and capped by federal law, unlike retail bank margin structures.
| Loan Type | Wholesale Rate | Retail Rate | Spread | Monthly Savings ($500K) |
|---|---|---|---|---|
| Conforming 30-yr | 6.125% | 6.625% | 0.500% | $164/mo |
| Jumbo 30-yr | 6.375% | 6.875% | 0.500% | $168/mo |
| FHA 30-yr | 5.875% | 6.250% | 0.375% | $119/mo |
| VA 30-yr | 5.750% | 6.125% | 0.375% | $117/mo |
| Non-QM (Bank Stmt) | 7.250% | 7.990% | 0.740% | $250/mo |
| Cash-Out Refi | 6.500% | 7.000% | 0.500% | $164/mo |
| Fee Name | Retail Typical | Wholesale Typical | What It Covers | Negotiable? |
|---|---|---|---|---|
| Origination Fee | 1.0–1.5% | 0.25–0.75% | Lender processing and underwriting | Rarely at retail |
| Rate Lock Fee | 0.25–0.50% | $0 | Holding the quoted rate | No |
| Admin/Processing Fee | $500–$1,500 | $0–$395 | Internal paperwork | Sometimes |
| Discount Points | 0.5–2.0 points | 0–0.5 points | Buying down the rate | Yes |
| Yield Spread Premium | Hidden in rate | Disclosed as broker comp | Lender-to-originator payment | N/A (already disclosed) |
| Month | Conforming Spread | Jumbo Spread | FHA Spread | Non-QM Spread |
|---|---|---|---|---|
| Mar 2025 | 0.375% | 0.500% | 0.250% | 0.625% |
| Jun 2025 | 0.500% | 0.500% | 0.375% | 0.750% |
| Sep 2025 | 0.500% | 0.625% | 0.375% | 0.625% |
| Dec 2025 | 0.375% | 0.500% | 0.375% | 0.750% |
| Feb 2026 | 0.500% | 0.500% | 0.375% | 0.740% |
Calculate Your Wholesale Savings
Wholesale vs Retail Rate Comparison
Rates shown are Feb 2026 market estimates for comparison purposes. Actual rates depend on credit score, LTV, and lender. NMLS #1426884.
Related Resources
- California Wholesale Mortgage Broker— Full-service wholesale lending in CA
- Wholesale vs Retail: Complete Comparison— In-depth analysis of both channels
- All Loan Programs— Conforming, Jumbo, FHA, VA, Non-QM & more
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Wholesale vs Retail Mortgage FAQs
Why are wholesale mortgage rates lower than retail bank rates?
Wholesale lenders operate on a B2B model with lower overhead—no branch networks, no teller staff, no billboard advertising. They pass those savings directly to borrowers through lower rates. A wholesale mortgage broker like Mo Abdel accesses these rate sheets on your behalf, delivering rates that are consistently 0.375–0.500% below what retail banks post. On a $500,000 loan, that translates to $117–$250 in monthly savings depending on loan type.
What hidden fees do retail banks charge that wholesale brokers do not?
Retail banks embed several fees into your loan that are difficult to identify: origination fees of 1.0–1.5% (vs 0.25–0.75% wholesale), rate lock fees of 0.25–0.50% (wholesale charges $0), admin fees up to $1,500 (wholesale caps at $395), and yield spread premiums hidden inside the rate. A wholesale broker discloses all compensation upfront on your Loan Estimate as required by federal law. On a $600,000 loan, the total fee difference ranges from $3,000 to $12,000.
How much do borrowers save over 30 years with wholesale pricing?
A borrower with a $750,000 conforming loan saves approximately $47,000 over 30 years by using wholesale broker pricing instead of retail bank rates. This figure accounts for both the lower interest rate (0.500% spread) and reduced upfront fees. For jumbo loans above $1,266,300 (the 2026 conforming limit in high-cost areas), savings increase further because jumbo spreads between wholesale and retail consistently run 0.500–0.625%.
Is wholesale broker compensation truly transparent?
Yes. Federal regulations under the Dodd-Frank Act require wholesale mortgage brokers to disclose their compensation on the Loan Estimate (LE) document. Broker compensation is capped and cannot change based on loan terms, rate, or product type. Retail banks face no such disclosure requirement for their internal margins. When you work with Mo Abdel at Lumin Lending, you see exactly what the broker earns—a level of transparency that retail banking does not provide. Call (949) 822-9662 to request a side-by-side rate comparison.