What do retail lenders in the mortgage market include?

Retail lenders in the mortgage market are primarily defined as the institutions that deal directly with consumers to provide loans. Banks and credit unions fall into this category because they serve as the point of contact for individuals looking to secure mortgage loans. They offer various financial products, including personal banking services and mortgage financing, directly to borrowers.

In contrast, federal agencies, institutional investors, and insurance companies typically do not engage directly with retail customers for mortgage lending. For instance, federal agencies primarily focus on insuring loans or providing guidelines for lenders, while institutional investors generally invest in mortgage-backed securities rather than originating loans. Insurance companies may offer mortgage-related services but do not usually operate as direct lenders to consumers in the same manner as banks and credit unions do. Therefore, the role of banks and credit unions is central to the retail lending sector in the mortgage market.