Mortgage

Exodus from wholesale unlikely in the wake of Guaranteed Rate’s exit

Exodus from wholesale unlikely in the wake of Guaranteed Rate's exit
Written by Publishing Team

The guaranteed price exit from the wholesale channel is an anomaly, as few, if any, companies are likely to follow.

Mortgage brokers who worked with Stearns Wholesale “saw the writing on the wall” after the guaranteed price Buy Stearns Lending It happened a year ago, said Brendan MacKay, president of the brokers’ call for the Association of Independent Mortgage Experts.

“Guaranteed Price is a retail-focused company and the expectation was that they didn’t do the deal to go into wholesale,” McKay said. “I don’t expect more lenders to leave wholesale; if anything, I expect more lenders to enter the wholesale channel as the proportion of intermediaries in the market continues to grow.”

with high interest rates, the brokerage business is seeing benefit from mortgage originators for individuals who are no longer mortgaged by a large pipeline of refinancing from loans in progress, connecting them to their employer.

As a result, the lenders that are likely to get out of wholesale now are those lenders like the guaranteed interest rate who don’t have much of a presence in the channel, MacKay continued.

Chicago-based Guaranteed Rate confirmed the news, but no other details were revealed.

Back in 2005, I worked with a guaranteed rate Nearly 100 Mortgage BrokersHowever, like many other lenders, they eventually left the wholesale channel.

Stearns was once one of the largest wholesalers in the mortgage business. But in recent years, the Stearns management has focused on Develop other origin lines, such as the retail channel as well Join the adventures With both small businesses in the mortgage industry and businesses outside of it.

This is what attracted the guaranteed price of Stearns, whose previous owner, Blackstone, bought the latter company from bankruptcy In October 2019. The joint venture business was identified as one of the drivers of this transaction. In 2017, Guaranteed Rate itself formed a joint venture with relogie Holdings Corp. to create a price-guaranteed affinity, which markets its services to real estate and property transfer brokers.

AIME’s Mackay said brokers who have been dealing with a guaranteed rate shouldn’t have any problems finding another outlet for their production.

But he warned them to keep an eye on clients who closed their loans at a guaranteed rate, expecting the lender to call on those borrowers when they needed their next mortgage.

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