In the last year, mortgage guidelines has changed completely. We have seen tons of mortgage companies go under. Heck I think we all enjoyed visiting mortgage implode
But now that the herd has thinned and the competition has been eliminated, I am having a hard time understanding why wholesale banks are still treating us remaining loan originators like kindergartners.
I work as a mortgage lender. I originate loans through my company and then my company chooses later to sell the loans in a secondary market. I originate about 90-95% of my loans within my own company.
The only time I need to deal with a brokered relationship is that 5-10% of the time. However, when I deal with a wholesale mortgage bank in these times, it seems I get nothing but troubles. Lately, I have been victim to wholesale banks not knowing their guidelines, program changes with no follow up to me the customer and also having them not honor committed locked loans and guidelines. I recently had a bank change program guidelines in the middle of the transaction and would not honor the loan.
Are these banks really trying to stay in business for the long route, or are they just trying to make some income until they can wrap up affairs and close their wholesale business?
Many mortgage companies have closed their wholesale division doors to brokered relationships. With all the bad business they booked in the last couple of years, they have had no choice. I can respect a business for making these choices, however, I have little respect for wholesalers who are saying one thing and doing another.
Does anyone know a couple of great mortgage wholesale banks that have not thrown you under a bus in the last 6 months?