The big banks are losing purchase loan market share to non-depository lenders. Why do you suppose that is?
Comments
additional comments on "Big Banks Lose Purchase Loan Market Share to Non-Bank Lenders"
Comments are closed.
Big Banks Lose Purchase Loan Market Share to Non-Bank Lenders
admin - Tuesday March 7, 2017
I think much to do with it is the realtors are wanting the buyers to avoid the big banks as many of the MLOs do not have a license and keep screwing up their own deals I know one realtor will not allow the buyer to make an offer with a Wells Fargo preapproval!
I feel the non bank lenders are experiencing exactly what occurred in the sup prime run up with out the crazy product. Banks do not want to provided the full array of product lines to meet the consumers needs. We have a better informed consumer these days and often know about an available product before a LO may. Banks tend to want to offer one or two fringe products as marketing tools in order to bring in the vanilla/higher margin products that they can push off to the agencies. Once again the Big Banks are slow to meet to market and still are confounded why the public isn’t lined up outside around the corner to give them interest. The compliance comment is spot on as well. I feel many banks are still wondering if this whole internet is a fad or not.
When is the next Mortgage Shot Event in SO Cal.?
We have 2.4 million miles of pipeline in the US, and another 1,172 miles is going to ‘destroy the planet’. What a laugh!
If you watch the news interview on CNBC with the Chairman of Barclays first thing out of his mouth is we need to keep the Dodd Frank . Another Jamie Dimon Protegee. Why do think this is?? Because through their wrongful meetings with the feds the other mutt that was in control for eight years they managed to wrongfully steal market share through their meetings with Frank,Pelosi,Warren,and whoever else (OBAMA). SOrry so political but amazing that after BOA blamed Coutrywide (who was the wholesaler for brokers was cleared of any wrongdoing once BOA stole this and wells swallowed good ole Wachovia. They still have unequal playing fields and the brokers need to be able to make a little more to say nothing of JUNKING the Dodd Frank after costing us 800 bILLION. SImilar to the OBAMA don’t care program. Total waste of America’s money while Dimon became a billionaire. Wasn’t it Frank and Brian that did a show disclosing that Barney Frank owned an AMC?? Fact is banks caused the mess blamed brokers and the few of us remaining such have still helped the public get loans in a way the banks and their employees haven’t COMPETENCY AND EMPATHY!!
In the Michigan market the non-banking institutions are taking loans from the banks due to incompetent processing and bad press (Wells, Chase, BofA). However, the PRIMARY reason they are garnering more referral business from Realtors is simply due to regulation and appraisals. The non banking lenders are creating a panel of realtors and hand picking the appraisers on that panel versus the banks who use an Appriasal Management Company. The non banking companies have much more control over their appraisals and therefor the value that comes in. The realtors are aware of this. The appraisers want to make value so they stay on the lenders panel and keep the business. I know of an instance were the appraiser called the Loan Officer of one non banking institution and told him he was not going to make value on the Purchase price. Said appraiser told him to order through a different appraiser so it didn’t kill the purchase. It is manipulation of the appraisers and value all over again. Realtors are aware of this and that is why the first question when meeting with a prospective realtor is “what is your appraisal process”. either the BIG BAD BANKS are going to switch to panels or the CFPB is going to put their foot down on the non banking institutions. The former is more likely due to deregulation. The pendulum will shift.
Goe’s comment is silly. In MI it’s just the opposite.