It’s a wild and wacky mortgage market out there and we’re beginning to hear reports that some large megabanks are starting to lose loan officers to nonbanks. Over the past two years National Mortgage News has reported extensively on Bank of America losing some of its top producers, especially in California. (We’re now working on a lead about another firm. Stay tuned to this website.) One LO told us that on purchase money transactions certain Realty firms are shunning banks because they cannot close loans in a timely fashion. But there’s an irony to this tale. Nonbanks are supported by megabanks via warehouse lines of credit. In other words: nonbanks are closing deals faster than megabanks – while using warehouse lines from another part of the megabank. Go figure.
