Correspondent Lending - CLASS OF 2007!
Filed under: Correspondent Lending, Mortgage Industry Trends, Quality in Lending — admin @ 9:24 pm
I never fail to marvel at the sheer survivability of the entrepreneurs in the mortgage industry. For those that are sounding the death knell of the small mortgage entrepreneur, I wouldn’t ring it too loudly. Most of the mid-tier wholesale lenders are fleeing from wholesale production and anything to do with the word broker.
Any quick overview of the implode-o-meter will show a who’s who of the players in the wholesale arena that have all exited stage left by force or design. Plagued by the inability to fund many products through their line, draconian haircuts, exposure to risks from brokers, and a general lack of profitability in wholesale… they have made the only sound business decision available…stop the insanity.
However, from the ashes does rise the phoenix of the small correspondent lender. Without massive overhead and unruly production, they are still offering boutique wholesale. They don’t have massive rate sheets or innovative technology. They don’t offer hundreds of products. They have a small line, a small select group of brokers and a willingness to produce quality loans.
Perhaps it is the genesis of a new class of wholesalers… ones that offer conservative yet substantive support to their brokers. Wholesalers that, at least right now, are not interested in risks…. Or getting it done for the sake of getting it done. They have proven that they have a business model that supports their survival.