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- Martin Wareing, "Martin Wareing"
- Contributions:3772
I heard that rumor last week... Because it was "rumor" and not directly from CITI... didn't pass it on. Interesting through to say the least.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
That's too bad! I liked Citi and Envision. Well, I wonder how many AE's and Wholesale Operation's staff will now be out of a job? Got to be a huge amount of folks!
- Chris Corica, "Chris Corica"
- Contributions:1075
How long before us brokers have no banks left to broker with?
- Tammy Stockdale, "Colorado Mtg Broker"
- Contributions:6995
Shhhhhhhh Chris!
Chris, that is my fear as well, and the thing that is forcing many brokers to go net-branch style. I know of a company you should avoid. ;) hehehe...
- Martin Wareing, "Martin Wareing"
- Contributions:3772
I think consolidation and thinking smart about the future is going to be necessary for many... There is always a mom-n-pop hardware here and there, but I have heard/seen rumblings from CHASE/SUNTRUST in FL... I know we are the epicenter, but it is funny how they trickle out. Keeps us all thinking.
- Rob Cochems
- Contributions:3523
"Citi is drastically restructuring our wholesale operations, moving to a call center approach and scaling back from 9,500 approved wholesale brokers to 1,000 brokers. All outside AEs are losing our positions and the remaining brokers will be serviced through call centers out of Dallas, TX, Ann Arbor, MI and St Louis, MO. All brokers will be notified this afternoon if business will end or if you are able to continue to work with Citi under the new structure."
- Andrew Adams, "203K Specialist"
- Contributions:9349
I have been saying it for awhile, I am genuinely concerned that 3rd party originations will be a thing of the past. Since I broker loans in addition to correspond and direct lending....I am not looking forward to the day. Just simply calling it like I see it.
- Artie Blume, "HomeLoan1"
- Contributions:61
This is what I got from my AE.
CitiMortgagae has announced today that it has made the decision to re-structure it's Wholesale business model by continuing the Wholesale Division without local account representation. Our nationwide sales efforts will be handled by an inside group of dedicated individuals committed to bringing the best products and services to our valued brokers.
- Rick Plutchak, "Rickyp"
- Contributions:14
Got confirmation here in California from our Rep. that Friday is the last day for Citi Wholesale.
- Texas Banker
- Contributions:517
I hear BOA, and Wells will follow suit.
- Steve Needham, "Steve Needham"
- Contributions:28
B of A already did
hmmm... very interesting...
- shapiroamg
- Contributions:3058
BofA closed down wholesale. they might still be doing correspondent. They do have a wholesale reverse division (the old seattle mtg co).
- VINO VIXEN
- Contributions:68
So, if there is no retail side to the wholesale side, what happens to those lenders who are strictly wholesale?
vino, they are SOL
- VINO VIXEN
- Contributions:68
Why is that exactly Jennifer?
- Martin Wareing, "Martin Wareing"
- Contributions:3772
I read it as they are PFGing this thing.. Inside reps to service Brokers.. cut costs... have less people on the street giving our security codes to get junky loans through to save more money for surveillance.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
- VINO VIXEN
- Contributions:68
Wow, such positiveness. But I still have not received an answer to my question. Why would the wholesalers with no retail be SOL?
- Texas Banker
- Contributions:517
Correction by BOA I meant Countrywide, since they are one the same.
Chase also is cutting back their wholesale staff by 90%,
Chevy Chase quit taking new applications,
Also heard TBW and Provident is having funding problems.
that cannot be good news for wholesale or correspondent lending..
Anyone know anything about this??
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3427
BOT, try ML IMPLODE, they talk day and night about this and have been for a good 2 years now.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
BOT, here's the link.
- Martin Wareing, "Martin Wareing"
- Contributions:3772
Costs are being cut in the Wholesale Biz for sure.. Comp/Pay plans are being adjusted/raised for other A/E's in the field. Not that alarming when the forecast is recession with lowered housing sales... values...lowered mortgage activity... higher approval thresholds...higher loss provisions...higher fraud activity... What part of that business model seems like anyone is dying to expand?? Wholesalers are struggling with the "relationships" that cost them billions (yes they had a part, too), but there is not much accountability from a Broker... therefore if they are not great.... and many weren't. poooof... EZ fix for logical thinking.. It still comes back to very simple economics: loan money to those who are willing and willing to pay you back. If that had been followed... all would be fine.. Less previous activity... less pain today. Give and inch and all parties involved have been shown to have taken a mile. keep rockin'.
- Michael Mazursky, "FHA Mortgage"
- Contributions:314
Vino,
Chase, Citi, CW, and Wells are the biggest purchasers of MBS. If they are cutting ties with brokers because they believe brokered loans have a higher default, who's to say they will purchase MBS from these warehouse lenders who solely depend on brokers for business? Also, what if these same correspondent lenders get their warehouse line relinquished? Or maybe their line gets cut down and can not fund as many loans?
- Jason Evans, "JasonEvans"
- Contributions:38
The majority of my loans over the past few months have gone to TBW and I have not had any problems with loans funding to this point.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Michael,
I am not sure I understand what you are saying.
Those 4 lenders don't purchase MBS's they buy loans that are then pooled and sold on the secondary market. The liquidity issues that banks are faced with is that nobody wants to buy those pools and thus they are having to hold them in their portfolio rather than sell them. The more loans a lender has to hold in the portfolio the less money they have to lend and the more expensive rates get.
Fannie and Freddie are the largest purchaser of these pools.
At least that is my basic understanding of what goes on.
I could be entirely wrong.
- Andrew Adams, "203K Specialist"
- Contributions:9349
The difference between being a broker and being a correspondent lender is when a loan is brokered a check is cut and the broker is done, the lender has no recourse. If you are a correspondent lender the loan closes and the lender can refuse to buy the loan forcing the correspondent to keep it on their warehouse line of credit. If that correspondent doesn't have a large enough line of credit or their line of credit is shut off or cut back they are likely to have to shut down because they cannot buy the loan back.
- Michael Mazursky, "FHA Mortgage"
- Contributions:314
Andrew,
You are probably right but I was under the impression that Fannie and Freddie purchase them and then insure the loans and sell them off to investors i.e Chase, Wells, Citi, CW, etc. who then service them as well. Your second example is what I was trying to say about the likes of Sierra, Plaza, TBW, AME, etc. The lenders that purchase those loans could at some point refuse to do so if they do not want to buy brokered loans.
- Chris Corica, "Chris Corica"
- Contributions:1075
AA - Brokers can have buy backs as well.
No more Citi Wholesale?
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- 0.0/5.0
Contributions:38Just got an email from our Account Rep with Citi saying that they got rid of the entire wholesale sales force today. Looks like they are moving to just the retail/correspondent model.
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