Retail LO to broker: Has a migration period really started?

United Wholesale Mortgage and Homepoint, claim that a transition period has started, with retail LOs migrating to broker shops amid higher mortgage rates and lower volumes. 

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   Executives from wholesale lenders, such as United Wholesale Mortgage and Homepoint, claim a transition period has started, with retail LOs migrating to broker shops amid higher mortgage rates and lower volumes.    LOs started to look for new opportunities as refi leads dried up, Mat Ishbia, chairman and CEO of UWM, told analysts Tuesday.   "They say: Why are these brokers making more money and offering better rates with better technology than I have? And so they start to migrate and have those conversations."   The migration started before the COVID-19 pandemic, in 2018, but was interrupted by the recent refi boom, according to Phil Shoemaker, president of originations at Homepoint.    "When originators have full pipelines, they're just kind of dealing with it, but the minute their pipeline starts to dwindle, the cost difference between the retail and broker channels really starts to become apparent and important."   Ishbia and Shoemaker, of course, maintain brokers are better. But migrating from one channel to another is not that simple. Aspects such as back-office structure, non-compete contracts, and compensation packages need to be considered.    Based on that, how are broker shops and lenders approaching LOs, regarding compensation, work structure, and contracts? Please share your thoughts with me at flavia@hwmedia.com.    Flávia Furlan Nunes Mortgage reporter HousingWire United Wholesale Mortgage Q1 profits up 89% despite lower production Mortgage, Politics & Money United Wholesale Mortgage (UWM), in the first quarter of 2022 posted an increase in margins and profits over the prior quarter. Save Time and Close More Loans with Powerful Broker Technology Maximize business opportunities in today's booming housing market. Black Knight's LoanCatcher℠ loan origination system (LOS) is an affordable, cloud-based LOS that helps mortgage brokers originate, price and close deals faster. Schedule a demo today. Sponsored by Black Knight Here's a look at a reimagined LOS landscape Presented by Mortgage Cadence HW Media CEO Clayton Collins is joined by Jim Rosen, vice president of product management at Mortgage Cadence, to discuss the challenges facing lenders in the LOS landscape, and how an LOS-first approach solves for them. Mortgage applications rise despite higher rates Mortgage Mortgage applications rose for the second straight week even as mortgage rates rose to 5.53%, the MBA reports. eClosing: How to Generate More Revenue in Today's Market Join Notarize for an interactive discussion where you'll learn how to generate more business, close loans faster, and reduce funding cycle time, while providing an exceptional borrower closing experience. Register today! Sponsored by Notarize Despite rising rates, Rocket delivers $1B profit in Q1 Mortgage Rocket Companies, the parent of Rocket Mortgage, generated a whopping $1 billion profit in the first quarter, up from $865 million in Q4. HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

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