Wholesalers Told to Control Loan Pricing

With loan volumes falling, wholesalers need to monitor their mortgage brokers and exert control over loan pricing, according to John Konyk, senior vice president of National City Corp."If you ever wanted to pick a time to be careful about product, pricing issues, suitability -- this is it," Mr. Konyk told a fair-lending conference sponsored by the Consumer Bankers Association. He warned the conferees that brokers have gotten used to making lots of money. But now the business is slowing down. "Don't kid yourself and don't let the numbers cloud your judgment," he said. "Establish pricing policies and controls and maintain the same policies for your retail business as your wholesale business." Mr. Konyk is in charge of regulatory management risk at NCC, which has national bank subsidiaries that do prime and subprime mortgage lending. The CBA can be found online at http://www.cbanet.org.