Wholesale Lenders Decline – Mortgage Industry Insider from MortgageDaily.com
DALLAS, February 20 /PRNewswire/ Program choices are rapidly diminishing for mortgage brokers, according to coverage from https://www.mortgagedaily.com — the dominant source of online news for the mortgage industry.
Stung by repurchase requests for loans with early payment defaults, wholesale mortgage lenders — which derive their business from loan brokers, have been swallowed up, exited the business or closed shop altogether.
Central Pacific Mortgage is selling six wholesale branch offices, according to an announcement Wednesday. More than half of the operation’s $180 million monthly volume has reportedly been Alt-A. (https://www.mortgagedaily.com/Mergers021907.asp)
New York Mortgage Trust Inc. said it has agreed to sell substantially all the assets of New York Mortgage Co.’s wholesale lending arm in a transaction expected to close by the end of the month. The wholesale operation was originally launched in July 2005 to generate ARMs and Alt-A loans, the company announced at the time. (https://www.mortgagedaily.com/Acquisitions021607.asp)
Accredited Home Lenders’ chief operating officer said during a recent conference call reviewed by MortgageDaily.com that it no longer will make stated-income loans with high CLTVs to borrowers with credit scores under 640. It will also curtail first-time homebuyer programs and programs that include piggy-back seconds, which will significantly cut its second mortgage originations.
Two days prior to that, Fremont General Corp. notified its brokers it would no longer make second lien loans, a spokesperson told MortgageDaily.com. (https://www.mortgagedaily.com/Wholesale2nds021507.asp)
ResMAE Mortgage Corp. announced that it filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Concurrent with the filing, Credit Suisse agreed to buy certain assets of the Brea, Calif.-based wholesale lender. (https://www.mortgagedaily.com/ResmaeBankruptcy021307.asp)
The decline of the wholesale lending sector reduces the variety of loan programs available to mortgage brokers and, ultimately, consumers.
But the news wasn’t all bad for brokers.
IndyMac Bank announced an advancement in its loan origination system that gives brokers the ability to order, view and draw their own closing documents on line. Meanwhile, the Impac Companies announced several user-friendly enhancements to its Web-based automated underwriting and pricing engine. (https://www.mortgagedaily.com/ClosingProcessWholesale021407.asp)
Complete wholesale lending coverage at:Â https://www.mortgagedaily.com/lenders.asp
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