One of the nation's largest cooperatives of real estate brokerage companies has launched a search for an additional wholesale lender to further help its members originate home loans.
Master Mortgage Corp. started the search last week, according to Bob Horner, president of R.D. Horner & Associates, the Chicago consulting firm handling the search.
Master Mortgage, a cooperative of real estate brokerage companies, is the latest in a swarm of such companies looking to create more solid lending relationships with mortgage banks.
Goal Is Better Volume
Lenders are looking for more origination volume now that the refinancing boom is history. And brokers, who are reaping a smaller cut of home sale commissions, are turning to residential lending to create more revenue.
Mr. Horner expects Master Mortgage to sign one or more wholesale lenders in two to three months.
The contract could involve 50,000 loans a year, totaling about $5 billion, he said.
Chicago-based Master Mortgage is a subsidiary of Master Trust International Inc., a cooperative of 29 real estate brokerage companies, each operating in noncompeting markets.
Issues Addressed
The group gathers to discuss issues facing real estate brokerage companies and negotiates some financial arrangements as one entity.
Master Mortgage is a mortgage brokering subsidiary of Master Trust. It was formed with 22 of those real estate brokers.
Master Mortgage has two wholesale relationships. PHH US Mortgage Corp., Mount Laurel, N.J., was signed up officially last April, but has been working with the group since 1992.
GE Capital Mortgage Corp., Raleigh, N.C., began supplying loans for Master Mortgage late last year.
Pacts to Continue
Both relationships will be maintained, said Michael Cornicelli, Master Mortgage president.
But Mr. Cornicelli said some Master Mortgage members were not able to take advantage of the relationships with GE and PHH.
He said he hopes the new lender will be able to better handle closing documents on behalf of the real estate brokers and make government loans.
"The issue is, do we need more than one lender?" he said. "The answer is an affirmative yes."
The majority of Master Mortgage members have loan brokerage affiliations.
Mr. Cornicelli said it is important that Master Mortgage provides, through its affiliated lenders, a complete menu of lending opportunities.
He would not name which lenders Master is considering. He said the group was choosing from a handful of "known" nationwide lenders.
