Wholesale lending is shrinking, like everything else. But don't count
Many brokers are getting out of the business, but there are still
David Olson, a managing partner at Wholesale Access in Columbia, Md.,
Some brokers have dropped out of the competition, he said, and he
"Volume is down 40%, so capacity should decline close to that number,"
"Everyone is screaming and hurting and trying to wait it out," he said.
Refinancing may pick up again if the flattening yield curve inverts, he
Meanwhile, the large wholesale lenders are still doing some business.
"From May through last month, we've been consistent as heck," said Joe
"The last couple of years were la-la land," he said, and should not be a
When business was brisk, Countrywide used 9,000 approved brokers. Today,
Countrywide's wholesale volume is doing well in the Southeast, Mr.
"Ask me, am I pleased? No, because I'm greedy," Mr. Harvey said.
Not all mortgage bankers think a large wholesale business is beneficial.
Howard K. Levine, president and chief executive at Arcs Mortgage Co.,
"I'm convinced the wholesale business will decline in size even more
Arcs has four wholesale branch offices and is not planning any changes.
But pricing is getting worse, he said.
"Portfolio lenders are now buying 30-year fixed at two points above