What We're Hearing

It's an undisputable fact that the mortgage banking industry is going through the throes of a transformation not seen since the savings and loan crisis of the late 1980s/early 1990s (when S&Ls controlled the business along with a few non-bank giants like Countrywide, Lomas & Nettleton, and Prudential Home Mortgage). The smart money is betting on depositories controlling the business -- or will they eventually stumble too? The following sentiment -- edited in part by me --comes from independent LO Anne James of Reliance Funding of Whittier, Calif.: "It's self-employed brokers and mortgage bankers who have been put out of business by the economy, scared out of business and gone to work for the 'Big Four.' Obama and his banks spurred on by our socialization, have a blank check to put us out of business like the appraisers whom the banks now own. I have plenty of business now but if my non-bank sources are put out of business, the lending will come to a screeching halt. Banks can't even wire funds without messing them up. (ie; look up Chase Auto Finance on Google, no contacts just 100s of complaints)." As we reported in National Mortgage News earlier this week there is now a lending/servicing cartel of two: Bank of America and Wells Fargo which together have a market share north of 42% when it comes to loan originations. "When we saw that number it really stunned us," said Glen Corso, who with two partners has just launched a new advocacy group to lobby on behalf of independent mortgage bankers. See the NMN website early this afternoon for an update...