A new wholesale lender will begin accepting loan packages on Dec. 1.
Total Mortgage Services today announced that its new wholesale lending division will accept its first broker-originated package on Dec. 1.
Jim Lynch was hired to oversee the new business.
Operations will initially include broker submissions from the Northeast, according to the statement. Total hopes to expand to the entire East Coast by 2011 and all 50 states within three years.
“We think that it is a perfect time to enter into this arena when everyone else is being forced to exit,” Total President John Walsh told MortgageDaily.com last month.
Today’s news release noted that an increasing number of mortgage brokers are not renewing their licenses.
The Milford, Conn.-based company said production has been “thriving” despite the worst slump in 75 years. In addition, operations have been “dramatically” streamlined from technology investments that include fraud detection.
Last month, Total reported $385 million in first-half 2009 originations. By the end of the year, volume was expected to reach $800 million. Since launching in 1997, fundings have surpassed $4 billion.
“By year five, we plan to be among the nation’s top 10 wholesale originators, with $4 to $5 billion in annual loan sales,” Lynch said in the news release today.
Walsh added that the new wholesale unit “will drive down costs considerably.”
