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Big banks report growing originations

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Mortgage Professional America | 15 Jul 2013, 04:00 AM Agree 0
Two major lenders have reported increased origination figures for the second quarter
  • duh | | 15 Jul 2013, 10:28 AM Agree 0
    of course they made more money. they raised their rates by over 1% and are still borrowing at ZERO.

  • Bill in Florida | | 15 Jul 2013, 11:05 AM Agree 0
    Since Wells was and is by far the largest originator in the country, cutting off the wholesale business last July and beating their servicing pipeline to death at every corner couldn't possibly have anything to do with it could it? a prior Tier one broker for many years to Wells I can tell you they were the best for many years on wholesale. They did everything they could for the two years prior to minimize their process shops headcount expense, shutting many centers down and drastically reducing headcount effecting turn times to the point of embarassment at times. They'd been preparing and structuring their retail side pretty transparently for some time before taking the monetary fine hit last year and with so brokers suddenly left out in the cold last summer after years of providing quality business to them they simply stepped into their shoes overnight. Their branch network cross sell efforts and new retail network will suffice until once again the market wakes up as has happened so many times in prior recessions that retail originations are "very" expensive to manage and the time tested 3 or 4 to one mortgage production ratio a wholesale business historically provides is the answer as it always has been. While the market is slow they can manage it...but sooner or later retail becomes a bloated whale as higher ups push for ever higher production numbers. The question is how long will that take? Hope we survive the extended wait. The difference this time around is that we don't have as many lenders walking in the door daily with effective fallback mortgage products as rates have sharply risen as we have in post recession recoveries past. The spread today on ARM's stinks as lenders price to stear mortgages fixed in fear of early payoffs in the next 2-5 years and porrowers don't yet see enough difference in payment spread to go that route yet; No serious alternative programs like 30/5 or 30/7 year balloons and so on much less combo's. If congress gets their way on Fannie/Freddie, who steps in unless rates jump as the sole incentive in the private market. Before 2008 who could have imagined how badly screwed up the industry could become under the excuse of consumer protection.
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