Wholesale lending is an increasingly important factor in the mortgage ecosystem, providing valuable services for MIs and lenders alike. According to Desmond Smith, chief growth officer at UWM, the main issue surrounding it is a lack of education about the type of services it provides.
Smith explains that one of the main benefits of wholesaling is that it gives originators options, and it can be tailored to their individual business needs. By taking on some of the tasks typically done in-house, wholesale lenders can help MIs and lenders save time and money. Additionally, Smith explains that in most cases, lenders don’t need to create the necessary infrastructure; they just need to learn how to access the services that already exist.
To summarize, wholesale lending provides several benefits for originators and lenders. It gives them flexibility and access to specialized services while allowing them to avoid the time and money associated with in-house operations. According to Desmond Smith, chief growth officer at UWM, the main issue surrounding wholesaling is a lack of education on the subject, so more knowledge and information should be shared among the mortgage ecosystem.
Main Points:
-Wholesale lending is an important factor in the mortgage ecosystem
-Benefits include more options, time and money saving
-Infrastructure for services usually already exists, just need to learn how to access
-Main issue is the lack of education on the services it provides
You can read this full article at: https://www.housingwire.com/articles/what-mortgage-lenders-need-to-know-about-wholesale/(subscription required)
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