Wholesale Conditions Better, But U/W Still Tough
A wholesale lending "renaissance" is on, according to one executive. And improving rates have forced at least one wholesale lender to increase minimum lock periods to 45 days. Meanwhile, wholesale lender underwriting overlays are a troubling trend for third-party originators.

Wholesale mortgage lenders are more frequently issuing their own underwriting overlays in addition guidelines established by Fannie Mae and Freddie Mac -- a trend one industry insider said "makes things way, way more complicated and ultimately confusing for industry and consumers."

In a recent table of conventional overlays, Bank of America Home Loans Correspondent Lending listed more than 80 overlays.
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Wholesaler Launching
A company that originates more than $3 billion a year in retail business is launching a third-party channel that will focus on government programs. The expansion into the mortgage broker arena follows similar moves recently by other wholesale lenders.

Brokers Liable for Fees on Early Payoffs at Wells
Mortgage brokers can be required to return the fees and overages they earned on a closed loan if that loan is paid off or refinanced shortly after origination, according to a new policy from Wells Fargo & Co.'s wholesale lending unit.

New PHH Exec Key to Expansion of Indirect Channel
The president of PHH Corp.'s mortgage banking subsidiary says a new executive hired to oversee loan production is "invaluable" to a planned expansion in its wholesale and correspondent lending.

MetLife Top Reverse Wholesaler
For the second month in a row, MetLife Bank's wholesale division has closed more reverse mortgages than any other reverse mortgage wholesaler. But factoring in retail volume, another lender has dominated the top spot most of this year.

Lenders Report Rising Originations
Nearly all originators saw in improvement in business from the first quarter. While most have seen home loan fundings decline, however, from a year ago -- a few pushed activity higher. By switching from retail to wholesale originations, one lender saw annual originations soar 600 percent.

Wholesaler Helps Pay for NMLS Training
In addition to several education firms that offer training required under the Secure And Fair Enforcement for Mortgage Licensing Act, a wholesale lender is offering subsidized courses for its mortgage broker customers.

Wholesaler Investigated for Not Disclosing Litigation
While the Nationwide Mortgage Licensing System has aided states in their regulation of the mortgage industry, some states still lack adequate resources to thoroughly investigate license applications. One example is a New Jersey wholesale lender that was able to obtain a Connecticut license without disclosing that it was facing mortgage fraud litigation -- even though such disclosures are required in that state.

Wholesaler Expands
Just seven months after launching a new wholesale division in the Northeast, a Connecticut lender is now operating in 17 states.

Top Reverse Wholesaler Spot Changes Frequently
Wholesale reverse mortgage production has fallen by more than half over the past year, while retail fundings are down 40 percent. During just the past six months that ended in May, four reverse mortgage firms have held the title of biggest wholesale lender. On the retail side, however, the title has never changed.