Even though loan brokers have been going out of business in droves the past three years, the wholesale lending channel is alive and well, according to the nation's largest table funder, Wells Fargo & Co.
Speaking at the New York Association of Mortgage Brokers trade show, Wells executive Richard Bloom told attendees that the channel is "here to stay" and "will thrive for many years to come."
Bloom made his comments during a panel on regulatory updates. Other session speakers echoed his comments.
In the second quarter wholesale lending accounted for just 11% of all originations nationwide, according to figures compiled by National Mortgage News and the Quarterly Data Report. Three years ago wholesale lending had a 30% market share.
Joe Amoroso, director of national sales for Real Estate Mortgage Network, said he too believes the channel is not going away, but noted that the industry was "caught off guard" by Bank of America's recent announcement that it was exiting the space.
He noted that correspondent lending — a business that B of A is staying in — has "more skin in the game."
One regulator speaking at the show, Rholda Ricketts, deputy superintendent for the New York State Department of Banking, said eventually the broker business "will begin to grow again and flourish" after a time of upheaval and change.
