Loans originated through mortgage brokers fell 51% in the second quarter, accounting for just 10.5% of originations nationwide, a new low, according to exclusive production figures compiled by National Mortgage News.
Three years ago broker-sourced loans (transactions using table funding) accounted for 30% of the market. In 1Q the broker share was 12.8%, NMN found.
Lenders increasingly are using both retail and correspondent purchases to manage a nascent refinancing boom and what little there is of purchase money loans. (While broker/wholesale fundings fell 51% in 2Q, originations through all channels declined 39%. The industry originated $358 billion of one- to four-family loans in the second quarter.)
All of the top ranked wholesale lenders in the nation experienced sizeable declines in their table funding volumes. Wells Fargo & Co. ranked first with $5.9 billion in originations through the channel, followed by Provident Funding Associates ($4.3 billion), and Bank of America ($3.9 billion). The top three saw their volumes fall 62%, 59%, and 28%, respectively.
The nation's top 10 wholesale lenders, as a group, experienced a 49% decline in production compared to 2Q09. In total, 49 lenders filed wholesale figures with NMN and its Quarterly Data Report publication.
Although the showing was poor, the National Association of Mortgage Brokers thinks the sector may be poised for a rebound. NAMB CEO Roy DeLoach said depositories are showing a renewed interest in the wholesale channel because it doesn't involve the brick and mortar costs of retail. (For the full story and rankings see the Monday edition of NMN.)