What’s the big difference you ask?
Predominantly it is that the majors are deposit taking institutions whereas most of the second tier lenders aren’t.
The majors are able to lend out money they hold on deposit for the loans they issue. Second tier lenders, as a rule have to buy the money that is used to source their loans.
What does it mean to you?
As a borrower – nothing really. A loan is still a loan, and as long as it is the right one for you, does it matter who you get it from?