Who's who in wholesale.

Author:Lamalfa, Thomas S.
Position:Wholesale mortgage banks - Cover Story
 
FREE EXCERPT

The top wholesaler in 1991 purchased $7.6 billion in production To even make the top-10 lost of wholesalers in 1991, lenders had to buy a minimum of $2.4 billion in production. These huge volumes by the largest wholesalers indicate the growing share of loan volume coming in through this booming means of production.

Annually, for the past five years, my company has gathered and examined data on wholesale loan production. We simply collect the prior year's actual purchase volume numbers, along with the projection for the current year. Eighty-one companies are polled.

Figure 1 lists these wholesalers alphabetically and shows their actual and projected purchase volumes, in millions of dollars, for 1991 and 1992, respectively. A final column provides the year-over-year rate of change.

FIGURE 1 Top Wholesale-Mortgage Bankers in Alphabetical Order Firm 1991 1992 % Growth Action Mtg 300 500 67% American Liberty Bank 627 540 -14% American Residential Mtg 1500 1950 30% America's Lending Network 100 600 500% AmSouth Mtg 250 500 100% AmSouth Mtg n.a. n.a. n.a. BancBoston Mtg 3400 5600 65% BancPlus Mtg 400 650 63% Barclays American Mtg 500 1500 200% Boston Five Cents SB 650 900 38% Capstead Mtg 2200 6000 173% Centerbank 600 900 50% Chase Home Mtg 2000 2300 15% Chemical Mtg 4000 5000 25% Citicorp n.a. 1250 n.a. Citizens Fidelity B &T 300 300 0% Collateral Mtg 650 300 200% Colonial Mtg 630 1000 54% Comerica Mtg 200 200 0% Commercial Federal Mtg 300 500 67% Commonwealth-United Mtg 1100 3000 173% Countryside Funding 5100 1200 135% Courtesy Funding 1900 2800 47% Crestar Mtg 400 800 100% Crossland Mtg 1400 2000 43% Dollar Mtg 600 900 50% Dominion Bankshares Mtg 1300 1400 8% Echelon Mtg 450 1200 167% Empire of America RCC 1200 2500 10% FBS Mtg 700 1600 129% First American Mtg 600 600 0% First Fed or Rochester 300 700 133% First Franklin Fin'l 1700 2200 29% First NH Mtg 500 600 20% First Union Mtg 4400 1500 -66% Fleet Mtg Group 7600 9600 26% Fortune SB 300 600 100% GMAC/RFC 6000 7500 25% GN Mtg 800 1300 63% Greentree Mtg 500 600 20% Greenwich Capital Fin'l 2400 2000 -17% Gulf States 180 520 189% Hamilton Financial 800 1200 50% Huntington Mtg 1400 2000 43% IMCO Realty Services 3400 n.a. n.a. Imperial Bank Mtg 1400 1750 25% Independence One Mtg 1200 1700 42% Inland Mtg 900 1200 33% Interfirst Federal SB 600 1000 67% J.I. Kislak Mtg 1200 1500 25% KeyCorp Mtg 1000 2000 100% LaSalle Talman Mtg 250 400 60% Lincoln Service Corp 1100 1500 36% Loan America Fin'l 1900 2750 45% Margaretten & Co. 600 1200 100% Marine Midland Mtg 1600 2100 31% Mark Twain Mtg 200 350 59% Merchants Mtg 600 800 33% Meridian Mtg 330 950 188% Monument Mtg 700 800 14% National Pacific Mtg 470 750 60% NationsBank Mtg 1700 2100 24% Norwest Mtg 6000 8000 33% Pinnacle Mtg 450 700 56% Plaza Funding 3700 5000 35% Prudential Home Mtg 6700 1300 94% RAC Mtg Funding 2500 n.a. n.a. Republic Mtg Services 1000 2400 140% Sears Mtg 1600 2000 25% Shawmut Mtg 300 400 33% Shearson Lehman Hutton Mtg 2400 3800 58% SourceOne n.a. n.a. n.a. TCF Mtg 300 400 33% Troy & Nichols 600 900 50% University Financial 300 425 42% Washtenaw Mtg 700 1200 71% Western Federal SB 2000 2500 25% Western Sunrise 530 900 70% TOTAL 08957 160685 47% n.a. = not available Totals include estimates for Citicorp, IMCO, and RAC where data was not available but not for ARCS or SourceOne. Figures are in millions. Before reviewing the 1991 figures for the largest companies, several definitions are in order. For purposes of this article, the term "wholesale lending" or "wholesaling" is used to encompass any indirect loan production: that is, loans purchased or acquired from a direct originator. The direct originator is the party taking the application from the borrower.

This originator may or may not process, underwrite, close and fund the loan. When the originator does handle all of these functions, he or she is referred to as a correspondent. If the person only originates, or originates and processes, he or she is called a mortgage broker.

Indirect or wholesale production stands in contrast to direct or retail production. Retail lenders rely exclusively on their own corporate employees, usually via branch offices, for originations; wholesale lenders produce loans by purchasing them from another company's employees.

The data include purchases of both closed and table-funded first mortgage loans sold on a servicing-released basis. The loans were acquired through the extension of best-effort and mandatory...

To continue reading

FREE SIGN UP