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I broker through one of those "Net Branch" nationwide brokers. Yes, you can work out of your house, but you have to be "attached" to a commercial branch. I happen to have an office verses work out of my home, it is just two of us and we are a true branch. Yes I get a larger commission than at a local owned broker but 70% plus every file I have to pay a $395 fee for. So the broker gets 30% plus the 395. However, they only work with solid reputable lenders. There is a staff of people that follow up with the lenders credibility. That is very important to me. I can work with about 600 lenders and because we are so large as a whole that we get rate discounts with many of the big boys because company wide we do so many loans with them and they know we have very strict auditing policies and the company only hires experienced, professional, ethical L.O.'s/brokers.
I can offer my clients MUCH better mortgage products and at better rates BECAUSE of the way the broker is set up, so don't discount those L.O's/ brokers that work from home or a small office, they might just have huge purchasing power.
I can offer my clients MUCH better mortgage products and at better rates BECAUSE of the way the broker is set up, so don't discount those L.O's/ brokers that work from home or a small office, they might just have huge purchasing power.
Exactly! The last stat I heard was that wholesale/correspondent lending makes up at least 2/3 of the originations in a given year. Lenders know this and certainly can't ignore it. If you think about it, companies are canabalizing their own retail branches by offering their wholesale and correspondent lending divisons better rates. And their whole arguement about how you should go retail b/c they can work/influence the underwriter more b/c they are "in house" is a bunch of garage...half the time it's probably a contract underwriter that is there on the behalf of PMI, Genworth, MGIC, etc. and the retail LO has as much pull with them as any other LO would have.
I broker through one of those "Net Branch" nationwide brokers. Yes, you can work out of your house, but you have to be "attached" to a commercial branch. I happen to have an office verses work out of my home, it is just two of us and we are a true branch. Yes I get a larger commission than at a local owned broker but 70% plus every file I have to pay a $395 fee for. So the broker gets 30% plus the 395. However, they only work with solid reputable lenders. There is a staff of people that follow up with the lenders credibility. That is very important to me. I can work with about 600 lenders and because we are so large as a whole that we get rate discounts with many of the big boys because company wide we do so many loans with them and they know we have very strict auditing policies and the company only hires experienced, professional, ethical L.O.'s/brokers.
I can offer my clients MUCH better mortgage products and at better rates BECAUSE of the way the broker is set up, so don't discount those L.O's/ brokers that work from home or a small office, they might just have huge purchasing power.
If you/your company works with 600 lenders...then I am sure some of your lenders have bit the dust. There is no way your companies "staff of people" can track the financial conditions of all these different lenders.
I have never figured out why some brokers work with or claim they work with so many lenders?? How many different lenders have you actually locked and closed loans with?
I/my bank work with about 10 lenders/investors (1/2 correspondent and 1/2 broker/wholesale) and I find that to be more than enough. I do about 90% of my deals through US Bank & Countrywide. I have always thought the broker ads that claim access to 1,500 lender is soley a marketing ploy.
One of the brokerages I worked for had about 45 lenders they were actually approved with. Of those, the employees, managers, and even the broker forgot they were approved with 1/2 of them. This brokerage is rather large with about 70 loan officers, and they used at most 10 lenders on average. There were only two reasons to look for new lenders, the most common was if a lender rep came in and had out of the ordinary rates. If we actively looked for someone, it was because the loan we had wouldn't fit with current lenders. It would be an utter waste of time to have more than 50 lenders in my opinion... though it does make sense to migrate around to each lender who has gained a surplus of money, and is trying to buy the market...
If you/your company works with 600 lenders...then I am sure some of your lenders have bit the dust. There is no way your companies "staff of people" can track the financial conditions of all these different lenders.
I have never figured out why some brokers work with or claim they work with so many lenders?? How many different lenders have you actually locked and closed loans with?
I/my bank work with about 10 lenders/investors (1/2 correspondent and 1/2 broker/wholesale) and I find that to be more than enough. I do about 90% of my deals through US Bank & Countrywide. I have always thought the broker ads that claim access to 1,500 lender is soley a marketing ploy.
Well, I believe 4 months ago it was 630 something, but yes, we are losing them just like everyone else. No, I don't work with ALL of them, but it does make it very convenient and good customer service when someone comes to you with a unique situation, you have more options to look at with the more lenders you have available to you. You are correct I do stick to the 15 or so lenders that I have closed with before and use often, but there is always that time you have to try that lender you haven't used before because they offer the product your client needs and your regular lenders don't. It is nice to know my company has already screened and approved them for us. We also have an on line, real time message board on each lender page that all L.O.'s in our company can write about how their experience with that lender. It is VERY helpful.
I use Interfirst, Washington Mutual, and Indy Mac for the run of the mill conforming mostly, but when I get investors, self employed with credit blips and such but not quite sub prime, or any other very common situations like that, yea I have to do some looking around for options. I used to too use Countrywide and Flagstar A LOT, but then there rates started to not be competitive anymore, then there underwritting/closing process became a huge hassle. Program for Program I find Interfirst and Wamu blowing CW out of the water over the last 6 months, by a large margin. I think it is important to take the time to find the best product out there for my client. Don't you?
I am so glad you thought that...have you looked at COUNTRYWIDE lately. I don't think that any mortgage company is safe right now. And I also think you should be very careful of being so sure of other places you quote also like USBANK...I would be VERY VERY cautious with them.
Well, I believe 4 months ago it was 630 something, but yes, we are losing them just like everyone else. No, I don't work with ALL of them, but it does make it very convenient and good customer service when someone comes to you with a unique situation, you have more options to look at with the more lenders you have available to you. You are correct I do stick to the 15 or so lenders that I have closed with before and use often, but there is always that time you have to try that lender you haven't used before because they offer the product your client needs and your regular lenders don't. It is nice to know my company has already screened and approved them for us. We also have an on line, real time message board on each lender page that all L.O.'s in our company can write about how their experience with that lender. It is VERY helpful.
I use Interfirst, Washington Mutual, and Indy Mac for the run of the mill conforming mostly, but when I get investors, self employed with credit blips and such but not quite sub prime, or any other very common situations like that, yea I have to do some looking around for options. I used to too use Countrywide and Flagstar A LOT, but then there rates started to not be competitive anymore, then there underwritting/closing process became a huge hassle. Program for Program I find Interfirst and Wamu blowing CW out of the water over the last 6 months, by a large margin. I think it is important to take the time to find the best product out there for my client. Don't you?
I am sorry to hear that you could be feeling the roughness of the world with Countrywide and Washington Mutual being in the situations they are in. And I am glad to see that you are one of the people on here who are not bashing other lenders that you do not work with on the regular basis. That shows class.
I am so glad you thought that...have you looked at COUNTRYWIDE lately. I don't think that any mortgage company is safe right now. And I also think you should be very careful of being so sure of other places you quote also like USBANK...I would be VERY VERY cautious with them.
US Bank...why? What basis do you have for your scepticism with them?? They don't do subprime or very exotic loans. They cater to the top end borrowers.
So you think mortgage lending may just stop completely or what?? I don't think you are to well informed and are probably a little too influenced by the out of control mass media.
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