Mortgage Grapevine

Political: Has the broker channel turned into the dumping ground for mortgage bankers?

I was visiting with a mortgage banker who said they are doing over $100 million a month and all the Harp2 regardless of LTV is being brokered. Why won't they bank this paper? So tell me, who gives brokers a bad name?
When did the broker channel turn into the bankers dumping ground for eliminating banker's risk?
by the voice of reason November 21, 2012 11:51 AM

I disagree Yati....you are missing the obvious point that it is a giant conspiracy to take down the broker market....

I mean what you said is technically correct, but lacks the subversive element that gives you an out when your business model fails...
by Donktard Borker November 21, 2012 12:22 PM

Why can't they fund these loans on their warehouse line YATI? Please explain!

Are you saying since the mortgage banker already did the loan the first time, they get to rewrite the loan through HARP2, make more money AND mitigate their risk? How does that work?

The mortgage banker I was speaking with sells their loans to the big banks, so if they are the ones originating and brokering these loans, why can't they bank them?

My understanding is mortgage bankers can't broker FHA loans, so why are they allowed to broker HARP2 loans?
by the voice of reason November 21, 2012 1:30 PM

Guess the best answer is ... where have you been?

I've always seen Bankers send what they feel are questionable deals via a Wholesale outlet ..... their attitude is simply to Broker any crap that comes across their desk. They get paid and less chance of a buy back.

by PA-MA Lender November 23, 2012 9:21 AM

If that is the case, why should bankers be allowed to broker loans? Why do wholesale companies allow bankers to broker loans?

And as YATI said: "Warehouse lenders loan based on the value of the property."

When is the mortgage business going to get back to lending on value?
by the voice of reason November 23, 2012 11:25 AM


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