When One Mortgage Door Closes, Another Opens

It's all about opportunity. Bank of America and Ally Financial recently tossed their correspondent lending divisions overboard. On the surface, some may look at these exits and shout, "The sky is falling." But the smart money knows that such departures spell opportunity. This week Gateway Mortgage of Oklahoma, a nonbank, launched a new correspondent lending division, and a handful of others – nonbanks among them – are considering the same. We keep hearing reports of a hedge fund or two with a $1 billion war chest waiting to enter the industry. The big question is why? But if you've done your homework, you already know the answer to that question. So, go head B of A, Ally and JPMorgan Chase -- exit as many mortgage sectors as you'd like. Someone (without legacy problems) is waiting to take your place at the table. Of course, this could all be wishful thinking and I may delusional.