Major lender closing broker channel

by Adam Smith30 Jul 2013

A major lender is exiting the wholesale broker channel to focus on its correspondent and consumer-direct business.

EverBank has announced it will shutter its wholesale broker lending business and intensify its efforts through retail lending offices and consumer-direct and correspondent channels. The move will see it close wholesale lending regional operation centers in Dallas, Sacramento and Jacksonville, and eliminate around 150 positions nationwide.

“Wholesale broker lending has long been an integral part of EverBank’s home lending business. After careful consideration, however, we announced we will close EverBank’s broker business and direct our efforts to grow correspondent lending, our network of retail lending offices and our consumer-direct channel,” company spokesman Michael Cosgrove told MPA.

Cosgrove said the decision to discontinue broker use was due to changing market conditions.

"In recent years – particularly in the wake of the financial crisis – the broker lending business has been in a state of transition. Given the recent rise in interest rates and the resulting dampening effect on refinance activity – coupled with the evolving regulatory burdens specific to the broker business – we’ve decided that it is in EverBank’s long-term best interest to exit wholesale broker lending," Cosgrove said.

The lender said it would continue to offer a full product suite through its direct, retail and correspondent channels. EverBank previously offered FHA, VA, conventional and jumbo loans through mortgage brokers.

“We’re dedicated to providing innovative mortgage products to our clients and improving the efficiency and effectiveness of EverBank’s loan-origination platforms. To do that, we’ve decided to exit the wholesale broker lending business and continue enhancing our other residential lending channels,” EverBank president and COO Blake Wilson said.

Cosgrove told MPA the lender believes consumer-direct and correspondent lending is the best way for the company to serve clients.

"To grow and leverage these channels, we’ve made significant investments in recent years – building our network of retail lending offices, expanding relationships with lenders and broadening our offering of innovative mortgage products and services for our clients."