“It’s huge growth, and we’re very excited to take on our partnerships with all the LOs and processors,” he said. “From an LO’s perspective, we’ll have the ability to lend to over 50,000 or 60,000.”
Transaction casts spotlight on brokers
The transaction has served to further cast a spotlight on touted advantages of using a broker, Stein suggested.
“We’ve seen tremendous growth in the wholesale channel over the last several years because we’re seeing a lot of retail LOs are moving over to wholesale,” he said. “That’s really what it is, right? It allows them to be more competitive, not only with rates but products as well. That’s the ultimate way to wrap the conversation of pairing borrower with mortgage brokers and non-delegated lenders that we work with.”
Statistics buttress Stein’s assessment about broker growth in the wholesale channel. According to the Nationwide Multistate Licensing System, 6,353 loan officers who left retail joined the independent mortgage broker community in 2021. Moreover, in the first nine months of 2022, more than 7,000 loan officers converted from retail to wholesale lending. As of September 2022, the wholesale channel gained nearly 18,000 loan officers-year-to-date.
“By using a broker, you have the option to shop for the most cost-effective mortgage on the market,” Stein said. “The beauty of the wholesale community is the fact that mortgage brokers are able to work with multiple outlets,” Stein said. “They have the option to work with certain lenders who have a more effective price or an interesting product like this ‘Buy Before You Sell’ product.”
Source: mpamag.com