The out-of-favor wholesale lending channel accounted for just 14.9 percent of all home loan originations over the three-month period ending in June, down from 15.5 percent a quarter earlier and 15 percent in the fourth quarter of 2008.
NMN said wholesale lenders table funded just $87 billion out of a total $583 billion in originations.
Though it was the lowest share in who knows when (not sure if it’s an all-time low), the fact that it’s just below previous quarters’ numbers could point to stabilization in the dwindling space, though it’s still unclear what role brokers will play going forward.
Mortgage brokers grabbed their largest share of originations in the fourth quarter of 2007, accounting for just under 30 percent of the pie.
Months later we embarked on a major mortgage crisis, which was largely blamed on third-party originators.
Of course, issues like the originate-to-distribute model may better explain why we got into this mess.