Why More Homebuyers Are Choosing Retail Lenders in 2026

Retail mortgage lending is on the rise, capturing a growing share of the conventional loan market. Here's what this shift means for California homebuyers and borrowers.

If you've been shopping for a mortgage lately, you may have noticed that more lenders are competing hard for your business — and there's data to back that up.

Retail mortgage lending has been steadily gaining ground in 2026, now accounting for over 44% of conventional conforming loan originations, up significantly from under 39% just a year ago. This means more borrowers are working directly with lender loan officers rather than going through wholesale or broker channels.

What's driving this? A few retail lenders have been aggressively growing their operations and staffing up to capture more purchase business. The result is a more competitive marketplace — which is actually great news for you as a borrower.

More competition among retail lenders typically means better service, faster turnaround times, and sharper pricing as lenders fight to earn your business. Whether you're a first-time buyer or looking to refinance an existing property, this is a good time to shop around and compare your options.

At our brokerage, we work with a wide network of lenders — both retail and wholesale — so we can find you the most competitive rate and terms for your situation. Reach out today for a free consultation and let us do the shopping for you.