First Bank shuts down their wholesale mortgage unit

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There has been a lot of furor over my “Dead Man Walking” post which outlines my opinion that mortgage brokers are marching towards extinction. It was written a week before Bank of America pulled the plug on their wholesale lending channel; and today a friend of Blown Mortgage lets us know that another bank has pulled out of wholesale.

It’s with a great degree of sadness that I need to inform you that First Bank has decided to cease their Wholesale Operations (retail in other locations are unaffected by this decision) effective Wednesday, October 31st. This past Friday, the 26th, was our last day to receive loan submissions.

It has been a great ride but as many great rides go…… this one has come to an end.

Hopefully our paths will cross again. Until then take care and thank so much for all your business over the years.

I don’t know the size or scope of First Bank’s wholesale operations; but it is just another example of lenders putting more faith in the retail channel and abandoning the wholesale side altogether.