Wholesale Production Registered Slight Decline in 3Q
Although many megabanks have exited the wholesale channel the past four years, originations sourced through loan brokers fell by just 1% in the third quarter compared to the same period a year earlier, according to a sample of survey figures compiled by National Mortgage News.
However, the results are notable for one other reason: some table funders are showing a huge increase in business, while others are experiencing a sizeable decline.
PHH Mortgage, for instance, registered a 62% drop in wholesale production in 3Q compared to the same period a year earlier. Astoria Federal, a depository, saw wholesale fundings decline 73% to just $80 million.
But two nonbanks—Impac Mortgage and Franklin American—showed sizeable increases of 130% and 109%, respectively.
The 10 firms in the NMN sample originated $7 billion through the channel, a 1% decline from 3Q 2011.
The sample excludes Wells Fargo & Co., which began its exit from the wholesale channel in early July.