The wholesale channel may be the puzzle piece that fits for mortgage originators and lenders considering moving into or expanding into a new mortgage channel.

Welcome to the May 2023 Insights Report

Welcome to STRATMOR Insights
Lisa Springer
Sr. Partner, CEO
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When our family contemplates change, we sit down together and create a pros and cons matrix. Case in point, my son Jesse was trying to decide between becoming a personal trainer or a physical therapist. We started with the basic strategy concepts: What is his purpose? What are his life goals? List five things that are most important to him — work-life balance, freedom to travel, income, etc. — and then prioritize them. Then rate the priorities on a scale of 1 to 5 for each life goal and determine which path best fits his purpose and his goals. He is now a very successful personal trainer who helps others achieve their fitness goals, is free to travel, and so on. Personal or professional, when faced with a big decision, weigh your priorities carefully.

In this month’s InFocus article, Senior Partner Jim Cameron offers insight into the wholesale channel. With his trademark attention to detail, Jim analyzes the trends and provides specifics to lenders considering expansion into wholesale. He also provides information to those loan originators who might be considering which model is best for them — a distributed retail branch model, a consumer direct (CD) model, or maybe becoming a broker. It’s a studied look at wholesale with data analysis only from STRATMOR. Don’t miss, “Thinking About Wholesale? Considerations for Mortgage Originators and Lenders.”

Customer Experience Director Mike Seminari outlines the importance of creating strong relationships with brokers in his May article, “Drive More Revenue by Rethinking Your Mortgage Broker Relationships.” Lenders, Mike points out that if you’re in the wholesale space, your rate sheet may be feeding short-term sales, but your relationships with mortgage broker partners will ultimately determine your long-term success. Check out his article in which he offers strategies that can be implemented now to strengthen the lender-broker relationship and create stronger, synergistic partnerships that drive more revenue.

Thank you for joining us this month. If you need help developing your mortgage banking strategy, including channel selection and focus, STRATMOR can help. Take advantage of our deep expertise in mortgage banking and contact your partner or principal or email me for assistance today.

Thinking About Wholesale? Considerations for Mortgage Originators and Lenders

It is no secret that mortgage industry volumes and profits are under extreme duress. Mortgage originators are scrambling to generate new business as demand for refinances has dropped dramatically, and purchase volumes are down due to a lack of inventory and ongoing affordability issues. In addition to scrambling for volume, loan originators must decide on the best model for them. Should they be a loan officer in a distributed retail branch model? Pivot to a lower-cost consumer direct (CD) model or consider opening their own branch? Or does it make sense to become a mortgage broker? Under which model can they best serve their customers and optimize earnings in this cycle?

Meanwhile, lenders in search of additional revenue and cash flows may consider entering the wholesale channel. The idea of increasing variable costs and reducing fixed costs in this market is very appealing. In this article, we will cover what drives loan originators and their decision to operate under the broker wholesale model, and we will also touch on key factors that lenders should think about when considering expanding into the wholesale channel.

More Insights

More Insights

Drive More Revenue by Rethinking Your Mortgage Broker Relationships

For mortgage lenders in the Wholesale space, the rate sheet may feed short-term sales, but relationships with broker partners will ultimately determine long-term success. Discover strategies to strengthen the lender-broker relationship and create partnerships that drive more revenue.

May 2023 STRATMOR Studies


STRATMOR Group offers data products and mortgage advisory services to power your performance, including industry-specific studies. Get the data driven advantage!

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