Wholesale/Broker Volume Hits New Low in 4Q

Wholesale lending through loan brokers accounted for just 15% of all mortgages funded in the fourth quarter, the lowest reading ever tracked by National Mortgage News, which has been keeping figures for 15 years.Mortgage lenders originated $277 billion of home mortgages in 4Q with retail accounting for a majority of fundings (44%) and correspondent making up the balance, 41%. Several large lenders have exited the wholesale sector in the past year, including, most recently, JPMorgan Chase, a top five wholesale funder. Bank of America recently reiterated its commitment to wholesale, noting that it has 5,000 active broker relationships through the platform it inherited when it bought Countrywide Financial last July. However, at its peak, Countrywide had 40,000 approved brokers in its network.