Will Other Wholesalers Bolt Too?

Yesterday National Mortgage News broke the news that Southern Trust Mortgage Co. of Virginia Beach had exited the wholesale channel, citing what it calls "increasing compliance implications" tied to the Federal Reserve's new loan officer compensation rule. Translation: management didn’t want to hassle with the reporting requirements and compliance. Of course, we don’t know for sure because STMC would not return our phone calls about the situation. As far as we know, STMC is the first wholesaler to exit the channel specifically because of the Fed’s new rule. But will it be the last? Not likely. However, many firms continue to see opportunities in wholesale, despite the new rules. Two such table funders include Total Mortgage Services of Connecticut, and Union Bank of San Francisco. In other words, as one window closes, another opens…