The fact is eventually there going to take away any commision and then pass regulation to make everyhting so hard that the only people writing mortgage loans are government employees making $45,000 a year. Fannie Mae and Freddie broken and only still in business becasue of government infusion. FHA showing signs of cracking. Some of the delinquency can be contributed to fraud but a majority is because of a crappy economy. But atleast the government is focused on health care becasue that is going to save us all.
_________________ "We need to spend money to keep from going bankrupt." Vice President of the United States Joe Biden.
Wholesale lending started about twenty years ago insofar as the majority of business. I remember most of it retail for a long time. Brokers were mainly for finding loans for individuals that could not go with banks etc.
Brokers do play a vital role, but the role somehow got muddied up, and too many found it to be a gravy train. The demand for quality and regulation will correct much of the "dirty" laundry.
Wholesale lenders scrutinize broker submissions very carefully. The more people have to pay the consequences for lying and misrepresenting facts on application, the more it will lessen. Don't think you can "get away with it", because you are under a microscope, believe it.
And I agree, one "buy back" is enough to put under a mortgage broker...all loans should be "with recourse"..
Chase to Hire 1,200 Mortgage Loan Officers by End of 201010Nov09
Apparently Chase thinks the mini mortgage boom is going to continue, as evidenced by their intention to beef up sales staff by 60 percent from current levels.
The mega-bank plans to hire 1,200 mortgage loan officers between now and the end of 2010 to help service clients looking to finance a purchase or execute a refinance.
The new loan officers will help customers in bank branches in 23 states, including “key states” like California, Florida, Texas, and “key metros” such as NYC and Chicago.
“With nearly 5,200 bank branches — one of the largest networks in the country — we need to ensure each branch has seasoned mortgage professionals to help meet the needs of their communities and is well positioned when the housing market fully recovers,” said Dave Lowman, head of home lending at Chase.
“We see the mortgage business as core to our relationship with consumers and expect to be a major leader in the industry for many years to come.”
Chase is the top third largest mortgage lender, with $37.1 billion in mortgage origination volume in the latest quarter.
Unfortunately, that’s nothing compared to the near $100 billion Bank of America brought in during the same period, especially as both acquired formidable players (Countrywide, WaMu).
Chase seems to be banking on promotional gags like its patent pending 1% Mortgage Cash Back, which seems like a pretty so-so deal.
The company, which originates loans through mortgage offices, call centers, and retail correspondent lenders in all 50 states, also currently services $1.1 trillion in home loans.
_________________ I hear nothing. I see nothing. I know nothing.
1200 more LOs NATIONWIDE, wow. That should get them inside of 90 days on refis, and inside 60 days on purchases.
1200 LO's will not speed up the process...seems to me these guys should be putting on more UW's & inside paper pushers. 1200 LO's (most probably phone jockeys) will not expedite the process; they may actually make it worse.
_________________ “During times of universal deceit, telling the truth becomes a revolutionary act”
– George Orwell
1200 more LOs NATIONWIDE, wow. That should get them inside of 90 days on refis, and inside 60 days on purchases.
1200 LO's will not speed up the process...seems to me these guys should be putting on more UW's & inside paper pushers. 1200 LO's (most probably phone jockeys) will not expedite the process; they may actually make it worse.
It was my weak attempt at humor. I think someone posted that as "the nail in the coffin" for wholesale. Can't help but laugh.
Still looking to hear from someone how wholesale is dead yet banks are reentering wholesale. If you didn't see previously, US Bank reentered and have brought MORE programs including 2nds to the wholesale market. Come on, doesn't anyone have the answer as to why they are reentering when this is clearly a dead man walking?
Come on guys - figure it out for crying out loud. If you are still brokering today, you know that the few remaining wholesalers have created such complex systems for submitting, tracking and closing deals that it doesn't pay to try to feed 3 or 4 wholesale relationships. Your processor can't be expert at half a dozen complex on-line systems, sets of rules, broker performance scoring etc. And of course, no appraisal portability. A deal submitted to Wells (or BofA, or Suntrust, or you-name-it) lives or dies there. The net effect - brokers are being channeled into a virtual "retail" branch of this or that wholesaler.
Wholesale not rotting away?
Why do you think Chase is planning to add 1,200 retail LOs in a shrinking origination market next year?
Why do you think Wells Fargo is shutting down wholesale fulfillment in Springfield, IL and consolidating it to Irvine, CA.
As the broker / wholesale business model is regulated out of existence in a shrinking origination market, you don't think the big boys aren't already planning to leverage that opportunity? Take a step back, take a deep breath and size it up for yourselves.
Come on guys - figure it out for crying out loud. If you are still brokering today, you know that the few remaining wholesalers have created such complex systems for submitting, tracking and closing deals that it doesn't pay to try to feed 3 or 4 wholesale relationships. Your processor can't be expert at half a dozen complex on-line systems, sets of rules, broker performance scoring etc. And of course, no appraisal portability. A deal submitted to Wells (or BofA, or Suntrust, or you-name-it) lives or dies there. The net effect - brokers are being channeled into a virtual "retail" branch of this or that wholesaler.
Wholesale not rotting away?
Why do you think Chase is planning to add 1,200 retail LOs in a shrinking origination market next year?
Why do you think Wells Fargo is shutting down wholesale fulfillment in Springfield, IL and consolidating it to Irvine, CA.
As the broker / wholesale business model is regulated out of existence in a shrinking origination market, you don't think the big boys aren't already planning to leverage that opportunity? Take a step back, take a deep breath and size it up for yourselves.
Bingo.
_________________ I hear nothing. I see nothing. I know nothing.
JTB, did you know they took the word gullable out of the dictionary? Seriously, from a lenders standpoint, why is it a surprise that a lender here or there try to expand a little into the market now that competition is basically nonexistent? So they have their retail ops do some wholesale processing so they don't have to lay people off. To what other growth do you refer? We are fighting as best we can but we have no voice. I haven't taken this many apps in years. You all know the conversion ratios.
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