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Special Reports
In this section of BrokerUniverse we examine a subject of key importance
for mortgage originators every month, based on special reports that run in our sister publication, Origination News.
Wholesale Showcase: Watching a Loan Channel
Watching A Loan Channel
The Special Report for this issue is called Wholesale Showcase, and it is an opportunity
for ON to display a number of different aspects of this part of the origination business.
Wholesale is simply the funding of mortgage loans by a mortgage lender where the
application is taken by a third party who lacks the capability to fund the loans itself, typically the mortgage
broker.
But there are varying aspects of the relationship that are being examined in this
Special Report. For example, one major subprime wholesaler, Option One Mortgage Corp., is teaming with the Mortgage
Bankers Association's CampusMBA to teach mortgage originators how to conduct training sessions for emerging-market
first-time homebuyers.
Looking for a sign that the wholesale channel has arrived? Countrywide Funding
Corp. has long been one of the nation's largest funders of loans through the wholesale channel. Yet 20 years ago,
when the unit was first established, only 100 brokers were signed up. Now the company deals with 30,000.
An enabler of the growth of this channel is technology. GHR Systems announced
that one of its customers, Prescott Funding, is integrating Loansoft (which GHR acquired) with GHR's own wholesale
origination website tool. Its aim is to create an end-to-end wholesale production solution.
No Red Tape Mortgage is using technology to advance its aims of becoming a more
responsive mortgage wholesaler. The company is shifting from being a correspondent seller which got its product
from mortgage brokers to being able to fund its own production.
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