Two sources are reporting that Wells Fargo is going to cut jobs in their Irvine CA wholesale lending operations center. How many wholesale lenders are left for brokers? Brokers and correspondent lenders, how are you doing out there?
Rain City Guide
Your Guide to the Seattle Real Estate Market
I hope Mortgage Implode is wrong with the states…80-90% of wholesale operations is huge. If it’s true, it almost sounds like they’re pulling out of wholesale and sticking w/correspondent lenders. Some banks have made moves like this (keeping correspondent relationships) since correspondent lenders take more of the risk of the transaction than a traditional broker. We will have to see what is announced on Monday.
Rhonda:
You are correct. The true broker market is going to be decimated. There will not be any mom & pop broker shops anymore. All of the lenders are focusing on correspodent because of better quality control and less risk. The lenders learned their mistake focusing on quantity instead of quality. It is going to be much harder to get approved with these lenders in the future. Even if they don’t get out of the broker market, I bet you that they will make it damn near impossible to get approved for these smaller shops.
Jillayne, I’ve heard that the figure Mortgage Implode is quoting is much higher than what will be actual…I have not heard any more news about Wells today (I thought today was when the announcement was going to take place).