Consumers use brokers because they are the local originators, said Art Saitta, assistant vice president, residential business development officer for the bank, who was speaking at the meeting.
Joe Amoroso, director of national sales at Real Estate Mortgage Network, noted that it’s a good sign wholesale lenders are entering the New York marketplace, referring to United Wholesale Mortgage, which was represented on the panel. (United’s executive vice president of sales Allen Beydoun clarified that his company is not yet accepting applications from New York brokers.)
According to figures compiled by National Mortgage News and the Quarterly Data Report, the wholesale/broker share of the market has been steadily increasing over the past five quarters.
In the second quarter brokers facilitated 10.7% of the market compared to a low of 6.7% established in the second quarter of 2011.
Beydoun believes that over the next 12 to 18 months rates will remain low. He is hopeful that the purchase-money business will continue to improve. (Nationally, refis account for about 70% of the market.)
When asked about broker file submissions, Amoroso said the biggest problem was loans being held up at underwriting because of deficiencies. Because of the costs involved, wholesalers like to see every file “underwritable” when it is submitted, he said.
Compliance expert Bonnie Nachamie, who moderated the panel, summed it up saying the package a broker submits to the lender is that broker’s reputation.