Wells Fargo Bank pulled out of the “wholesale arena” yesterday, meaning they will no longer accept mortgage loans directly from brokers. They will, however, continue to buy loans from “mortgage banks” that underwrite loans on behalf of brokers (this is called the “correspondent channel”). Banks like Wells like this channel because they can buy loans inexpensively without having to incur the overhead associated with originating and underwriting loans.
Wells’ departure from wholesale did not concern us in the least for a variety of reasons. First, we have no relationship with Wells because we are well aware of their fickle nature. Second, we have myriad lending sources that include both correspondent lenders that sell to banks like Wells and Citi, and lenders that sell directly to Fannie Mae and Wall Street like Wells does.
Because of our unique model that consists entirely of highly educated and extremely well-trained staff members (at all levels), the quality of our files is the highest in the industry. In addition, we do substantial volume. As a result, lenders of all types are literally beating down our door to establish relationships with us.
Our problem is hardly a lack of options, it is the time we have to spend spurning suitors. We are also getting aggressively pursued by a large number of very strong mortgage banks who would like us to align directly with them.
We see Wells’ departure from the wholesale arena as just another feather in our cap, as we are now that much more competitive than the many brokers who made the enormous mistake of relying on Wells.
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646