“Another Lender Leaves Wholesale Lending”
As you will see from the article below, CitiMortgage is getting out of the whole lending market place. The truth is, it really doesn’t matter. In the last few years over 300 lenders left wholesale. Guess what there is no shortage of lenders that can take on the additional mortgage business.
In the last few years, we had a number of wholesale lender stop doing mortgage business and at the same time we fired a bunch of others. We were able to make better pricing deals with the quality lenders that we wanted to use. The better pricing, because we do more volume with them, it now benefits all of our clients, as we pass thru the saving to them.
The sad part of this story, some people will lose their jobs, however, the good ones, will get absorbed by the lenders that do more business.
CitiMortgage Kisses Wholesale Goodbye
By: Paul Muolo
CitiMortgage, the nation's sixth largest residential wholesaler, Wednesday afternoon informed its loan brokers that it will cease table funding loans next week as it prepares to exit the channel.
A CitiMortgage spokesman said that most mortgage workers in the wholesale division will be absorbed into the company. “The jobs lost will be in the low double-digits,” he told National Mortgage News.
CitiMortgage will only honor rate locks that come in by Feb. 8. “All locked pipelines must be funded and closed by April 30, 2012,” writes John Hummel, vice president and national sales director at the bank, in a memo to brokers.
According to figures compiled by National Mortgage News and the Quarterly Data Report, CitiMortgage funded $1.5 billion of home mortgages through brokers in 3Q.
Table funding accounts for just 9% of its total fundings, NMN found.
The spokesman said the bank will remain in retail and correspondent lending.
One broker who has done business with Citigroup dismissed the announcement. “To tell you the truth their rates were nothing special,” he said.
Three years back CitiMortgage cut its wholesale division to the bone but then slowly re-grew the business starting in late 2010.
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Email: joe@righttracfg.com
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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