My friends and peers inside the larger banks, those I've known for decades, concure with this piece but would never put ink to paper or e-mail an acknowledgement. They do ask when I am ready to embrace the dark side (retail).

All the big players are squeezing the wholesale channel hard. If you haven't felt it, you aren't doing enough deals with enough banks. Either that, or you believe your AE who is paid to make you feel good.

Cancellation fees, deposits to lock, punitive pricing models are already being put in place for brokers; remember the '80's? More are coming in Q2. If, as a broker, you think you are immune from getting pushed out of business by the big banks (you know, the guys with their own money not some BS line of credit), you are walking east looking for a sunset.

My advice to those eastward walking brokers, those “veterans” with a solid six to eight years in the business, is to keep your fingers in your ears and keep walking towards that hopeful sunset in the east, while you are singing the “I'm a genius” song. Hey, Skippy, I've got some invisible cloth you can make your next suit out of. Only geniuses can see the fabric, so you'll be just fine.

Look to May 1st for the next notch on the belt to be tightened as the appraisal process is changed. Look for a massive drop in valuations (10% to 20%) as appraisers who are making 60 cents on the dollar try to make ends meet. It will be numbers of reports produced over quality and speed over accuracy. One screw-up and they are off the management company’s list. But, they'll really care about you, really, because you, Skip, are a genius.

My company will survive and so will others, but for genius types with a few years of experience, life will be short, nasty and brutish.

Don't worry though, the business down the street, you know the one where you put the owner in an Option ARM (3 year pre-pay and 4.5 margin), yeah, that guy, he's hiring. Best of luck.

My friends and peers inside the larger banks, those I've known for decades, concure with this piece but would never put ink to paper or e-mail an acknowledgement. They do ask when I am ready to embrace the dark side (retail).

All the big players are squeezing the wholesale channel hard. If you haven't felt it, you aren't doing enough deals with enough banks. Either that, or you believe your AE who is paid to make you feel good.

Cancellation fees, deposits to lock, punitive pricing models are already being put in place for brokers; remember the '80's? More are coming in Q2. If, as a broker, you think you are immune from getting pushed out of business by the big banks (you know, the guys with their own money not some BS line of credit), you are walking east looking for a sunset.

My advice to those eastward walking brokers, those “veterans” with a solid six to eight years in the business, is to keep your fingers in your ears and keep walking towards that hopeful sunset in the east, while you are singing the “I'm a genius” song. Hey, Skippy, I've got some invisible cloth you can make your next suit out of. Only geniuses can see the fabric, so you'll be just fine.

Look to May 1st for the next notch on the belt to be tightened as the appraisal process is changed. Look for a massive drop in valuations (10% to 20%) as appraisers who are making 60 cents on the dollar try to make ends meet. It will be numbers of reports produced over quality and speed over accuracy. One screw-up and they are off the management company’s list. But, they'll really care about you, really, because you, Skip, are a genius.

My company will survive and so will others, but for genius types with a few years of experience, life will be short, nasty and brutish.

Don't worry though, the business down the street, you know the one where you put the owner in an Option ARM (3 year pre-pay and 4.5 margin), yeah, that guy, he's hiring. Best of luck.

Feel free to take your conversations about me off my site. You're no longer welcome to post here. Congrats – you're the first person I've banned in more than two years on this site.

Enjoy the invigorating conversation with people who share your Pollyanna world view.

Feel free to take your conversations about me off my site. You're no longer welcome to post here. Congrats – you're the first person I've banned in more than two years on this site.

Enjoy the invigorating conversation with people who share your Pollyanna world view.

Classy move. Please feel free to no longer post on my site and go enjoy the comfortable world of commiserating with people who share your world view.

Call me, (818) 882-9205. I want to discuss this jerk, Morgan, with you and exchange ideas.

Lane

Call me, (818) 882-9205. I want to discuss this jerk, Morgan, with you and exchange ideas.

Lane

You are right. I am currently an AE for a Wholesale Lender now, and used to work for a very large Bank as an AE in the past. I don't know if wholesale is going to be completely extinct, but it sure wouldn't surprise me if it does.

I think that if wholesale does make it through…it will do so using only smaller Wholesale Lenders who can sell directly to Fannie and Freddie. The very few large banks who are still in wholesale will probably be getting out soon.

Scary times,

Account Exec.