There we have it HP'ers. The first mortgage broker to admit that mortgage brokers are going away. Now we just need a realtor to admit the truth - that realtors are going away too.
Mortgage brokers and agents will be first though. The banks and lenders are cutting them off, focusing on retail vs. wholesale.
So goodbye fraudsters. Goodbye conmen. Goodbye used car salesmen, bartenders and call center jockeys. You perpetuated the housing bubble (and crash) with your commission-fueled fraud. And you destroyed an industry. Your own.
Check out Morgan's post and also the REIC comments.
Dead Man Walking - Wholesale Lending is Marching Towards Extinction
There has been a whisper in the mortgage-lending winds, subtle at first, but growing louder everyday: wholesale lending by mortgage brokers is on its death bed. It hasn’t been proclaimed, in fact the big players are adamantly voicing support for their affiliated brokers, but the actions of large banks belie their big talk. For all of the kudos and reassurances as an important business channel lavished on top of brokers by lending institutions, the rug is slowly and silently being pulled out from under the broker population.
This isn’t a conspiracy theory - the facts are clear for all who choose to look past the PR spin put out by lenders; whose only motivation is to drain the last red cent out of this feeble business model before finally cutting off its oxygen with the heel of their mighty boot.
..The court of public opinion will demand a fall guy for this mess; and probably more than one. While everyone is pointing out Angelo Mozilo, watch for the mortgage brokers to take the brunt of legislative changes and regulatory action that will shut that channel down.