“Don’t forget that the home mortgage broker remained there,” White said. “I think when the regulative companies and Congress look at this, they must keep in mind that the home loan brokers were there. The banks went away from the business because they chose to go away from business. Even in the previous 5 or six years, they completely headed out: no jumbo funding, no alternate finance, no first-time property buyer, personal programs, no wholesale side at all, and they went totally retail.”
Nevertheless, with the ongoing growth in the broker channel over the last few years, White believes the banks are having second thoughts about departing the wholesale space.
“I believe they most likely understood that that’s an error, because the channel in the broker neighborhood has actually grown,” he said. “We’re going to continue to grow without it, but I think it ‘d be better for them and our wholesale channel if we can do it together. I just believe that has to be very carefully moved on, and I believe it will. But in general, I believe it opens the channels for everyone, and the more people in the market correctly regulated, the better off we are.”
While there are lots of veteran brokers who would welcome banks back into the wholesale channel, it does not suggest they’re going to forget the effect when they left it.
“They did shrink in their market since the mortgage broker stepped in when no one else would,” White said. “We offered individuals who needed the homes the most, their homes. We were there when it was hard. We existed attempting to assist individuals recover and getting them home mortgages when the banks wouldn’t give them a home loan.