Broker Sourced Loans Hit a New Low

Although there are signs of life in the wholesale sector, originations through the channel hit an all-time low in the first quarter, according to figures compiled by National Mortgage News. Residential loans facilitated through table funding accounted for just 12.8% of the $329 billion in originations in 1Q, down significantly from a peak of 28.2% three years ago. (The previous all-time low was 13%, established in the third quarter of last year.) The decline comes as some lenders—GMAC Mortgage, Bank of Internet and others—are showing a new willingness to use loan brokers or approach salesmen they used in the past. As wholesale declines as a channel, retail and correspondent production are gaining. In the first quarter retail lenders accounted for 47.5% of all loans produced with correspondent capturing the balance, 39.7%. (For the full story see the weekly edition of NMN.)