Union Bank: Brokered Loans Perform as Well as Retail

Union Bank of California, which originated $4.5 billion in mortgages last year, says it's sticking with loan brokers. The San Diego-based depository told The Orange County Register that brokered residential loans perform as well as retail ones. Craig Cole, a senior vice president for Union, said the key to third-party lending is carefully picking the brokers it does business with. Union Bank has 80 approved brokers in its wholesale network and monitors them and their loans over time. "Most lenders mismanage the broker channel by not being disciplined about who they work with and offering products indiscriminately through that channel," said Mr. Cole. Union Bank avoided subprime lending. The SVP recently told National Mortgage News that, "Not to blow our horn but we refrained from all the lending excesses of the past," adding that 2008 "was the best year we have ever had."