Comments on: E-Trade Exits Wholesale Mortgage, Revises 2007 Guidance

By: Herb

Herb — Tue, 18 Sep 2007 16:20:38 +0000

News flash, WAMU & Wells only clipped correspondent lending. Correspondent lenders only have a “state funding license (only cost $125.00)” not a state real estate license. Also, my friend works for WAMU’s retail division and they can only do refi’s now no purchases. Wholesale is held to a much higher standard and correspondence are not. Major banks now realize the damage from correspondence. Do the research.

By: Luis

Luis — Tue, 18 Sep 2007 14:31:25 +0000

Another wholesale lender going relying on their own production. I did not know E-Trade had a wholesale division. I am keeping a list of all these lenders pulling from wholesale such as Wells, Wamu and others. When the tide reverses and they come soliciting, I will throw them out my door.

By: Mike

Mike — Tue, 18 Sep 2007 13:17:02 +0000

Another with the trend to pull back from third party originations. Ha. Third party originations has for the past 15 years accounted for 70% of mortgage originations. We offer our clients a lot more loan products and have better cost controls. Its a lot easier for us to control our cost and therefore offer competitve pricing.

Etrade should not have been in lending. Plain and simple. From what I read their products were way too generous.

By: How to Get Rich in a Volatile Mortgage Market | Rice's Riffs

How to Get Rich in a Volatile Mortgage Market | Rice's Riffs — Tue, 18 Sep 2007 13:11:35 +0000

[...] Blown Mortgage highlights a potentially impending trend of companies cutting their non-core entries into the mortgage business: [...]

By: Barbara

Barbara — Tue, 18 Sep 2007 12:15:01 +0000

The trend is to pull back from wholesale and correspondent lending and get back to the basics, as it always is in this phase of the cycle. Retail is the only safe haven, offering solid products to solid borrowers.

By: Alexander

Alexander — Tue, 18 Sep 2007 09:21:10 +0000

I knew these nuts at E=Trade were dumb when they decided to hire loan officers for certain cities and pay them signing bonses and fly them to California for training. My god the had a good time on them and was silly to think that they could be a player in the mortgage market. I am told the loan officers took the money and ran they also had a ball in California. Thanks, E Trade I guess the E stands for EMPTY handed!

By: Paul Hiller

Paul Hiller — Tue, 18 Sep 2007 07:08:12 +0000

I will miss them. They had some products in wholesale that were priced as well or better than WAMU. I found them pretty fast and reasonable to work with.

By: Herb

Herb — Mon, 17 Sep 2007 23:52:12 +0000

ETRADE should of followed ING’s model! 5/1, 7/1, and HELOCS. ING owners have a great pricing model and there rates are a reflection of why the whole credit crisis doesn’t effect them one bit. I love this game!

By: Ray

Ray — Mon, 17 Sep 2007 23:42:05 +0000

CLC (Pittsburgh) services most of E*Trades’ accounts. They’ve been a 2nd TD lender for about two years.

By: Mike

Mike — Mon, 17 Sep 2007 22:38:37 +0000

Etrade is the worst performer in the 2007 Amex Securities Broker-Dealer index. Quite frankly as a well established broker I didn’t even know Etrade had a wholesale operation. Looks to me as though they want to blame mortgages when they obvisouly have other problems.