Big Broker May Seek Mortgage Bank Status

1st Metropolitan Mortgage, Charlotte, N.C., one of the nation's largest mortgage brokers, is considering becoming a mortgage banker, said company chief executive Daniel Jacobs. The reasoning includes having control of the process, he said during an interview at the Mortgage Bankers Association annual convention in San Francisco. In the typical mortgage broker refinance transaction, control is not as important. As the business shifts to a purchase market, the ability to control the transaction is important, he said. Right now, 1st Metropolitan is focused on agency and FHA loan products. In September over 60% of its volume was FHA. Mr. Jacobs said he is concerned about where wholesale is going and he is considering holding a summit with both mortgage lenders and brokers. Lenders are going to have to find other ways to measure success in wholesale than just volume, he said. The measures he said, include pull through and performance.