Big changes are afoot in the origination market these days. Once major players are stepping out of whole production channels. And that creates big opportunities, as any entrepreneurial mortgage banker will tell you. Midsized independent lenders have been quickly moving in to fill the gap. Whole new regional production divisions are being added by thriving independents to build out the infra-structure to meet the need. This has created a palpable sense of optimism about the business that has been absent for a long while.
In an article this month titled "Filling the Correspondent Gap," Debora Aydelotte, president of Titan Capital Solutions, a division of Denver-based Titan Lenders Corp., paints a picture of how large the space is that has been left for competitors to fill.
The author writes about the Aug. 31, 2011, announcement by Bank of America, Charlotte, North Carolina, to sell its correspondent lending division. "When the nation's largest bank announces it no longer wants to be in a niche that previously constituted nearly half its total output in residential lending, an industry tends to sit up and take notice. When that announcement is prefaced by the bank's earlier decision to shutter two additional mortgage lending divisions (wholesale and reverse) folks do more than take notice."
And not surprisingly, some of the smartest veterans in the business have already put in motion their plans to launch both new correspondent and wholesale lending...