Photo by Fabian Blank on Unsplash
With the news coming in last night that the last “big-bank” is out of the wholesale business it’ll now be up to the independent non-depositories to take on the work load. U.S. Bank Home Mortgage is exiting the wholesale lending channel and brokers will have until 12.11.17 to submit new loans before their doors close officially. Rob Chrisman’s Pipeline Press has more information on the topic.
What does this mean for the rest of the wholesale lenders? Obviously, there will be a void that must be filled and it’s important that brokers prepare to adjust their business to other outlets… especially in the jumbo space. U.S. Bank played a large role in the jumbo market and it will be very interesting to see where that volume is now allocated. As we all know the appetite for the jumbo product has dwindled in the past few years and sure… the new conforming loan amounts will help ease the sting, but maybe the real question we should be asking is… what does losing the last “big-bank” in wholesale mean for the jumbo market?
It’ll be interesting to see this play out. I mean, as a wholesale lender ourselves… we’re excited about the opportunity to step in and fill the void for any broker that’s looking for a new lender with competitive rates and an effortless lending experience (shameless plug… I had too). In all honesty though, it’ll be very important as a broker to make sure you’ve established different channels in which to send business now that U.S. Bank has bowed out of the market.