Mortgage Daily Logo

Investment Banker Phases Out Wholesale

Mortgage News

A Colorado investment banking firm specializing in acquiring mortgage brokers has scuttled its wholesale lending operation and changed strategies amid the continuing challenges of the subprime market.

About 25 employees out of more than 1,500 that work for the companies in W.J. Bradley Co.’s portfolio have lost their jobs, spokesman William F. Campbell confirmed in an e-mail to MortgageDaily.com.

“W.J. Bradley is an acquirer/aggregator of mortgage companies; it is not a lender, so there is no W.J. Bradley wholesale business per se,” Campbell said. “It is wholesale business within Bradley’s portfolio companies that is being phased out. Similarly, the company won’t pursue pure wholesale companies in its acquisition pipeline.”

According to a statement, wholesale originators accounted for less than 3 percent of Bradley’s portfolio companies. The mortgage brokers and originators working for Bradley’s holdings are on pace to originate more than $4 billion in residential mortgage loans this year, the company said.

“The economics and risk/reward metrics of small-scale, wholesale lending have deteriorated significantly over the past year, making it hard to justify the investment of both management time and capital,” William Bradley, president and CEO, said in the statement.

The company said it would “no longer entertain wholesale acquisition opportunities and will focus exclusively on acquiring retail origination platforms.”

“Going forward, we intend to invest exclusively in retail originators, either mortgage brokerage or banking operations, and to accelerate the pace of our acquisition program,” Bradley said. “Our goal is to acquire an additional $10 billion in retail origination volume within the next 12-18 months.”

Morgan Financial, one of W.J. Bradley’s portfolio companies, had been considering starting a wholesale unit, which was to have been called Morgan Direct, and would have aggregated the “small amount” of wholesale business that existed across all of Bradley’s portfolio, Campbell said.

That plan has been shelved, he said.

Campbell said there has been some misinformation posted on the Internet that Stonecreek Funding, which Bradley is in the process of purchasing, is closing. But Campbell said that acquisition is still pending.

Scott Garner was hired about two months ago as an account executive for what would have been a Morgan Direct office in Scottsdale, Ariz. But as part of Bradley’s actions he and seven other employees in the office are out of work.

“Everyone in the subprime market has sort of hit the wall,” Garner said in an interview with MortgageDaily.com. “The monthly volume was not very high here; the business really wasn’t there.”

For Garner, it was the second time in three months he had been downsized because of problems in the subprime market.

“With everything that’s going on, it’s just the nature of the market right now,” he said.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam