Comments on: Countrywide Scaling Back Wholesale?

By: Steve

Steve — Tue, 04 Mar 2008 22:38:02 +0000

I can respect and appreciate eveyone’s opinion….whoever said there were only two sides to every story must not have been had the foresight to consider ‘blogs’ in the future.
Clarion doesn’t need or ask for a pat on the back for providing “only” $100 million in wholesale business. And I also don’t believe that it is anything to apologize for. Nor will we apologize for the other $400 million we did with CW in correspondent volume. Or the other nearly $3 billion dollars we generated with our other lender relationships last year.
This was not about the loss of a lender, rather it was the disappointment in the loss of a relationship that had been strong over the past 10-12 years.
It was about the manner in which the decision was made and handled.
The strength and integrity of Clarion is not measured by a single relationship, nor is it defined by a single decision.
Was Dave frustrated and disappointed with this decision? You bet. He cares greatly about his company, his loan officers, and the relationships he has developed over the years. I would have been disappointed if he wasn’t upset with the decision that was made.
The plight of Countrywide has affected every loan officer in the country, either directly or indirectly. None of us should be happy with the events that have unfolded, and it continues to be a disappointment to see once strong companies such as Countrywide, First Magnus, and hundreds of others, weaken and, ultimately, disappear.
And, yes, I work for Clarion as well…and I have never been prouder to represent a company in my fifteen years as a mortgage originator.

By: Chris Sorensen

Chris Sorensen — Thu, 28 Feb 2008 17:45:41 +0000

A few thoughts from a company that sent BILLIONS to Countrywide Wholesale, over the last twenty years; We also were threatened with a letter. Acting as a teammate resolved that issue.
Great company. Became too agressive. Now, it’s cleansing time for all.
Wholesale will not go away. Sorry big six. I wear both hats. The greed on Wall Street will set back in once values stabilize. Too many visionary’s, who demand excellence of themselves and their team, will weather this storm and the consumer will benefit because of it.
Unless and until a nationwide registration number is put in place on each and every originator and the consequences of not adhering to standardized professional practices is swift and severe, companies will fail and the originators will simply move from one company to another.
1400 and only 600 million? There in lies the problem. We did a billion in 06 alone with 120 L.O.’s and Countrywide was our number one.

By: mikew

mikew — Mon, 25 Feb 2008 19:06:17 +0000

I am sure Countrywide has terminated many wholesale contracts throughout their normal business activities. I see no reason to conclude that they are looking to exit wholesale based on this instance. I believe that they need to eliminate all wholesale relationships that are not producing quality loans. Thats just good business.

If all wholesalers did this and it was common knowledge than we could expect that brokers would produce better perforiming business.

By: Graeme

Graeme — Sun, 24 Feb 2008 23:43:41 +0000

I love how people have this deranged idea that somehow Brokers are evil-doers, loan sharks, etc., but inside Retail originators are holy rollers. That is the dumbest thing I have ever heard! They are one in the same! I could just as easily work in Retail, but choose to work as a Broker in the Wholesale realm. Besides charging closing fees (which I have seen many from retail that are MUCH higher than the costs I charge), the positions are virtually the exact same.

I can’t reiterate enough how the Retail versus Wholesale argument is the dumbest thing I have heard. Can someone please explain how that argument makes any sense?

By: Jeremy

Jeremy — Sat, 23 Feb 2008 02:52:19 +0000

While I was employed at Countrywide WLD I saw a few brokers that had large volume get shut off. Large volume can sometimes also mean large headache, bad performance, and not much profit if this guy was a price whore. Judging by the tone of his email, I would say he is.
I am not in the business anymore, but I try to stay in touch. It just seems to me that wholesale will be the alternative and banking will be the norm. And borrowers who use brokers will be even more high maintenance and harder to work with than before.
I realize that life works in cycles, but you should never just assume that things will come back around. Ask the S&L guys from about 20 years ago.
I don’t have any ideas or solutions, and I am sorry for being negative. Just callin’ them like I see ‘em.

By: Markus Arelius

Markus Arelius — Fri, 22 Feb 2008 23:08:21 +0000

Does this mean that the Clarion guys won’t be going ski-ing at the Countrywide business partner event in Colorado?:

http://online.wsj.com/article/SB120365066632485187.html?mod=googlenews_wsj

By: Karen Card

Karen Card — Fri, 22 Feb 2008 22:29:05 +0000

P.S. Dave Marr, the Clarion CEO, is just about the most honest, upright, ethical, humble, thoughtful, innovative, introspective, caring, intelligent and non-whiney human beings I’ve had the pleasure to know. Hope you get the opportunity some time. You won’t forget it.

By: Karen Card

Karen Card — Fri, 22 Feb 2008 22:04:12 +0000

As a Clarion LO in California since 2000 I have NEVER submitted a file to C/W wholesale. Why would I? I have more control over closing, and access better rates for my clients going correspondent. For a bit of background, I primarily handle A-paper clients and business has been good for me the last few months.

Countrywide was my first choice as a correspondent source prior to their current difficulties, primarily due to the ease of utilizing their automated underwriting and product selection system. If I found better pricing elsewhere I would go there, but it was usually pretty close. And as an FYI to you bloggers out there, we did about $500 million last year with Countrywide. $100 million was just wholesale biz. Our LO’s are all independants and many are licensed brokers, investment professionals, full-time mom’s etc. who don’t act as mortgage reps full-time so the 1400 full-time reps is a bit misleading.

Further, we’ve been one of their top volume correspondents–per my countrywide rep– for the last few years. That is the relationship that Dave Marr referred to.

By: Onpoint

Onpoint — Fri, 22 Feb 2008 19:36:00 +0000

Interesting comments concerning mortgage brokers and what seems to be the demise of wholesale lending. A few of you apparently didn’t engage your brain before writing your comments. The major bankers ie: BofA, Countrywide and other bankers who promoted wholesale loans through the mortgage brokers were and still are responsible for the many loan programs available in the marketplace. These same major bankers approved (underwrote) the many good and bad loans according to their guidelines. If you think the banks are looking out for the borrower then you are a fool. Interest rates have climbed higher in the past couple weeks even though the fed reduced the rate the major players purchase money to 3% from 4.50 over a month ago. The national average start rate is around 6.37% according the latest report. Using that rate then subtracting the 3% fed rate – these lenders
already have a built in cushion of 3.37%. That does not include origination fee(s), application fees, processing fees, administration fees, etc. Remember these are start rates! I have seen retail rates being offered by the major players as high as 7.875% – Talk about profit for the major players!
To the credit of mortgage brokers, these independant business people are able to offer rates more than often lower then the very bankers they have wholesale agreements with. Connect the dots people before its too late.

By: Morgan

Morgan — Fri, 22 Feb 2008 15:53:51 +0000

john » again – i’m not an employee or broker for clarion so i guess this wouldn’t be pointed at me then.