The other day a mortgage recruiter made a blunt statement to us: “Wholesale lending is really hot right now.” Of course, given what’s happened to the mortgage business the past few years and all the blame being placed on brokers for crappy loan quality, such a statement might be taken with a grain of salt. But it’s safe to assume that all the bad actors have been forced out of the loan brokerage industry – although the same may not be said of retail LOs working for depositories. Anyway, lenders today (of all stripes) are constantly searching for the most efficient and cost effective way to fund loans – a strategy that should include brokers. Still, according to the Quarterly Data Report, brokers only account 10% of the origination market compared to 30% four years ago. Still, a recovery in the channel is underway but how far that recovery will go is up in the air – thanks to new CFPB and other regulatory proposals.
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