More than half of originations in the wholesale-broker market in the second quarter came from just three lenders.
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Hello, LOs!
Well, would you look at that! More than half of originations in the wholesale-broker market in the second quarter came from just three lenders(!): United Wholesale Mortgage, Rocket Pro TPO and Homepoint.
According to the latest quarterly figures from the number-crunchers at Inside Mortgage Finance, at the conclusion of the second quarter UWM had captured 29.1% of the wholesale-broker market, Rocket had 16% and Homepoint had 10.2%. The next highest was Caliber Home Loans at just 3.1% of market share, per IMF.
The three Michigan-based lenders accounted for 55.1% of broker originations in the second quarter, up from 53% in Q1. UWM grew originations 20.6% from the first quarter, but virtually everyone else saw originations fall.
In other words, mortgage brokers continue to shrink the number of lenders they're sending loans to.
I'd like to hear from the mortgage brokers/LOs out there – what you think about this trend? Do you see risk in narrowing your pipelines to just a couple of lenders? Is consolidation of smaller wholesale lenders an inevitability? And does that ultimately limit the value a broker provides?
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