Are you ready to make the life-changing switch to wholesale and take advantage of what ‘going independent’ offers you as a mortgage broker or loan officer? Our team at BeAMortgageBroker.com is here to help you every step of the way.

“THERE’S NOTHING LIKE IT” – REVELATIONS FROM A FORMER RETAIL LO

For any mortgage loan originator, there’s no feeling worse than losing a deal – especially when you lose it to a competitor who has access to better pricing. This was the situation that created a fork in the road for Frank while he was working for a retail lender. He could keep losing deals and being held up from closing more loans, opening the door for his referral partners to look elsewhere, or he could make the move to wholesale lending.

LOSING DEALS TO BROKERS

Frank spent his first years in the broker channel.  After the financial crisis of 2008, he pivoted to retail and worked at a call center before bouncing around at several large banks.

When interest rates were low, business was good. But when the market shifted again to a higher rate environment after 2021, Frank started noticing that he was losing deals to mortgage brokers.

“Our rates and fees weren't competitive with what wholesale brokers were able to offer,” said Frank.

 It got to the point where Frank had to make a decision about his future and with that came some tough questions.

 “How many more times can we write this loan for free or how many more times can we tell the Realtor, ‘Hey, they're just a little bit better than we are today?’”

TAKING CONTROL OF HIS FUTURE

As he planned his next move and pondered the possibility of going back to the broker channel, Frank encountered the usual rhetoric that many of his colleagues in retail regularly spread about the wholesale side of the industry.

 “When you're in retail and you mention the word “broker” the immediate response is, ‘No, you don't want to do that. You don't have as much control, you can't close as quick, you have no flexibility.’ You don't know what you don't know.”

 What Frank did know is that he had to leave retail. The future of his business and his livelihood depended on it.

“You're opening yourself up to exposure by not being able to win a deal,” said Frank. “That's a problem because you're giving another company an opportunity to swoop in and prospect that agent. Now the agents start seeing that and they're like, ‘Am I really referring my customer to the best lender?’”

“AN EYE OPENER”

Since making the move back to wholesale lending, Frank has benefits that extend beyond lower rates.

 “Just having more flexibility,” he said. “Not having to be tied to one product or one investor I think is tremendous.”

 Frank has also found that the broker channel is nothing like it was his first go-around and nothing like it was portrayed to be when he was in retail. He now knows that being a mortgage broker is the best place for him and the many others who have followed suit in making the switch.

 “When you transition over and you finally see – this is nothing like I thought it would be. It's an eye opener and it's better. There's nothing like it.”