Which type of mortgage lender acts as both a retail lender and a depository institution?

A savings and loan association operates as both a retail lender and a depository institution, which means it provides mortgage loans directly to consumers while also accepting deposits. This dual function enables them to originate loans and use the funds from their depositors to finance those loans. Savings and loan associations are often community-oriented, focusing on residential mortgages, and they can provide a range of financial services, including savings accounts and checking services.

Mortgage bankers, on the other hand, primarily finance loans and then sell them to investors; they do not typically accept deposits. Mortgage brokers act as intermediaries between borrowers and lenders but do not underwrite loans themselves or fund them; they connect customers with various lenders. Wholesale lenders provide loan products to mortgage brokers and are not involved directly with consumers in the retail market. Thus, the structure and function of savings and loan associations distinctly qualify them as both lenders and depository institutions.