DEFINITION of 'Retail Lender'

A lender who lends money to individuals rather than institutions. Banks, credit unions, savings and loans institutions, and mortgage bankers are all examples of retail lenders. Retail lenders are used generally for lending money for mortgages, auto loans and consumer-finance loans.

BREAKING DOWN 'Retail Lender'

Retail lenders are either federally or state chartered and regulated as such. Retail lending sometimes comes under increased scrutiny during periods of increased borrower defaults. Some think that retail lenders should have a fiduciary responsibility to the individuals that they lend to. Others believe that borrowers should be financially educated enough to make wise borrowing decisions.

RELATED TERMS
  1. Lender

    Someone who makes funds available to another with the expectation ...
  2. Marginal Lender

    1. A business that will only provide funds to a borrower in exchange ...
  3. Whole Loan

    A single residential or commercial mortgage that a lender has ...
  4. Subprime Lender

    A type of lender that specializes in lending to borrowers with ...
  5. Good Faith Estimate

    An estimate of the fees due at closing for a mortgage loan that ...
  6. Borrowing Base

    The amount of money a lender will loan to a company based on ...
Related Articles
  1. Personal Finance

    How to Shop For Mortgage Rates

    A step-by-step guide to finding and locking in the best rate for a mortgage.
  2. Personal Finance

    How Do Mortgage Lenders Get Paid and Make Money?

    When homebuyers educate themselves on how mortgage lenders get paid and make money, they are more likely to save thousands of dollars on their mortgages.
  3. Personal Finance

    What Does a Lender Do?

    A lender provides funds to another with the expectation those funds will be repaid with interest.
  4. Retirement

    When Are Mortgage Lenders Better Than Banks?

    Individuals seeking a mortgage loan should consider factors or circumstances that may make a mortgage lender a better choice than a traditional bank.
  5. Small Business

    Lending Clubs: Better Than Banks?

    If you need to borrow money and your credit is making it tough, this new option may be just what you're looking for.
  6. Personal Finance

    Tips for Choosing the Best Online Mortgage Lender

    Finding the right online mortgage lender can be a tall task. Here's some help on how to avoid wasting your time.
  7. Personal Finance

    Conquering The Terms Of Your Mortgage

    Buyers with big down payments should get the best mortgage terms. Unfortunately, the equation isn't that simple.
  8. Personal Finance

    5 New Barriers to Getting a Mortgage

    New lending requirements have made it much tougher to get approved, and some common situations that may not have presented a problem for approval in the past, do now.
  9. Personal Finance

    How Many Mortgage Lenders Should You Apply to?

    Applying to multiple mortgage lenders can get you a better deal, but it comes with a few drawbacks.
  10. Investing

    Financing Basics For First-time Homebuyers

    If you're looking to get your first mortgage, there are many financing options available.
RELATED FAQS
  1. Does inflation favor lenders or borrowers?

    Find out under what circumstances inflation benefits borrowers more than lenders and in which situations inflation can be ... Read Answer >>
  2. What is the 1003 mortgage application form?

    Learn about the 1003 mortgage application form, what information it requires and why this form is the industry standard for ... Read Answer >>
  3. Who do hedge funds lend money to?

    Discover the various entities that hedge funds are lending to, and the reasons why these hedge funds have been providing ... Read Answer >>
  4. When Is Mortgage Insurance Typically Required?

    Learn about the situations in which borrowers may be required to buy private mortgage insurance, and discover who this insurance ... Read Answer >>
Trading Center