Magazine article American Banker

Originators Prefer Small Wholesalers, Poll Finds

Magazine article American Banker

Originators Prefer Small Wholesalers, Poll Finds

Article excerpt

A survey measuring loan orginator's opinions about their wholesalers shows that bigger may not be better.

The study, done by consultants Tom LaMalfa and David Olsen, asked 58 companies that originate loans to rate the three companies to which they sell the most loans.

For the purposes of the survey, wholesale mortgage banking was defined as buying either closed loans or ones that are funded by the wholesaler at closing.

Clear Trend

Despite high-profile nationwide wholesale efforts by some large banks and mortgage banks, 80% of the top-rated companies in the survey were small-or medium-volume companies, Mr. LaMalfa said.

"Given the number of number companies with good ratings, we seem to see that these give better service," he said.

Participants were asked to grade the companies that buy their loans, known as wholesalers, on service, product menu, technology/automation, training/education, professionalalism, and commitment and rate-lock options.

On the 172 questionnaires, 107 companies were mentioned.

Countrywide Funding Corp., Pasadena, Calif., was mentioned most frequently, followed by Chemical Residential Mortgage Corp., Deerfield Beach, Fla.

Of the large California thrifts, only one, California Federal, was rated. "Thrifts have not done as good a job with wholesale." said Mr. La Malfa.

No Clean Sweeps

He added that a number of savings and loans were preparing to make a push into whole-sale and correspondent business.

None of lenders were ranked best in all six categories. In fact, no lender scored top marks in five of six areas. …

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