DISQUS

Sam · 10 months ago

well you are very far off . I am a broker and since your comment I have increased my business , and have more wholesale reps kissing my tail for my business. I can close loans faster then the bank the funds ae coming from. They totally love broker revenue and it will only go up . Only the strong , hightly rated brokers are still alive, the consumer knows that as well as the bankers . Your doom and gloom is from 2007 and it never happened , get another crystal ball ! Make a reprive or stop writing junk .

morganb · 10 months ago

Hey Sam,

No offense, but wholesale lending has decreased more than 80% since I wrote
that article. Get a clue.

brokers rule · 10 months ago

Marganb you are an idiot. You actually think the wholesale channel that has its tentacles thougout the entire country with lenders are going to be extict? All you na sayers are just plain ignorant. I'm a HUD approved mortgage broker and I beat the bank at their own game day in and day out. More wholesale lenders are popping up day by day. There may not be as many brokers still in business but thats to be said about the big guns on wall street as well. Your an idiot and stop writing these stories. You obviously don't work in a broker shop and know all the benefits we offer to the general public and what a better service we provide. Do me a favor. Call the 1-800 number to your bank and try and get something accomplished, then call a broker and tell me what happens........enough said.

morganb · 10 months ago

What a joke. Take a look at any of the numbers - wholesale lending is off
huge. Go ahead and smoke whatever you want in order to sleep well about
being in wholesale. I guess if you're still standing doing your FHA loans
congrats until the government ups your capital requirements and insurance
requirements and pushes you out.

This article is more than a year old. In that time wholesale lending has
completely crashed and burned. The lending capacity and options in the
channel have disintegrated to a few big players and regional banks, your
products aren't what they once were, banking lines have been cut 10-fold and
production through wholesale is a fraction of what it was.

Look at the MBA if you need to. Your own organization is cratering due to
the fall-out.

And congrats for being able to push a borderline deal through some
unsuspecting regional underwriter that wouldn't go through at BofA. Where
should I ship your award?

Account Exec · 10 months ago

Morganb,

You are right. I am currently an AE for a Wholesale Lender now, and used to work for a very large Bank as an AE in the past. I don't know if wholesale is going to be completely extinct, but it sure wouldn't surprise me if it does.

I think that if wholesale does make it through...it will do so using only smaller Wholesale Lenders who can sell directly to Fannie and Freddie. The very few large banks who are still in wholesale will probably be getting out soon.

Scary times,

Account Exec.

concerned LO · 10 months ago

Morganb you're right....even though the challanges ahead seem tough I think there will still be a market for wholesale but very limited. Im a mortgage broker in Dallas and all my competition is going away. Its good on one hand but scary on the other. Less competition would mean higher cost for the consumer in the end. Oh the humanity.

Lane · 10 months ago

Hey, this is Lane, a fellow broker.

Call me, (818) 882-9205. I want to discuss this jerk, Morgan, with you and exchange ideas.

Lane

morganb · 10 months ago

Hey Lane,

Feel free to take your conversations about me off my site. You're no longer welcome to post here. Congrats - you're the first person I've banned in more than two years on this site.

Enjoy the invigorating conversation with people who share your Pollyanna world view.

Winston Wolf · 9 months ago

Morganb,
Excellent article that was, and is, right on point. My family has been in origination and banking for more than 40 years; longer than many brokers with their slick-bakced hair and spinning wheel Cadillac’s have been alive.

My friends and peers inside the larger banks, those I've known for decades, concure with this piece but would never put ink to paper or e-mail an acknowledgement. They do ask when I am ready to embrace the dark side (retail).

All the big players are squeezing the wholesale channel hard. If you haven't felt it, you aren't doing enough deals with enough banks. Either that, or you believe your AE who is paid to make you feel good.

Cancellation fees, deposits to lock, punitive pricing models are already being put in place for brokers; remember the '80's? More are coming in Q2. If, as a broker, you think you are immune from getting pushed out of business by the big banks (you know, the guys with their own money not some BS line of credit), you are walking east looking for a sunset.

My advice to those eastward walking brokers, those "veterans" with a solid six to eight years in the business, is to keep your fingers in your ears and keep walking towards that hopeful sunset in the east, while you are singing the "I'm a genius" song. Hey, Skippy, I've got some invisible cloth you can make your next suit out of. Only geniuses can see the fabric, so you'll be just fine.

Look to May 1st for the next notch on the belt to be tightened as the appraisal process is changed. Look for a massive drop in valuations (10% to 20%) as appraisers who are making 60 cents on the dollar try to make ends meet. It will be numbers of reports produced over quality and speed over accuracy. One screw-up and they are off the management company’s list. But, they'll really care about you, really, because you, Skip, are a genius.

My company will survive and so will others, but for genius types with a few years of experience, life will be short, nasty and brutish.

Don't worry though, the business down the street, you know the one where you put the owner in an Option ARM (3 year pre-pay and 4.5 margin), yeah, that guy, he's hiring. Best of luck.