What's the purpose of wholesale reps

[alvin]

How does this differ from a regular loan officer, mortgage broker, account executives? Can someone please post the hierarchy levels in the mortgage industry from top to bottom? Thanks in advance

[Greg]

Wholesale reps are agents that represent lenders who sell or service mortgage notes. They work with brokers and bankers that use wholesale lending. They are a middle man selling the lenders services to brokers and bankers.

Retail Loan officers work for a company who has it's own products and are sold or serviced by that company. Most retail divisions spring up from wholesale lenders who want to originate their own business directly rather than relying on brokers to use them out of a very competitive wholesale market.

Mortgage Brokerages are companies using wholesale products solely.

A mortgage broker shop is simular to a real estate brokerage in terms of operational levels and management.

A Mortgage banking company is more like a large corporation in most cases. They often go public and have several divisions, corporate offices, and levels of management all reporting back to a VP.

In short....

[carlo@CreditReportAtlas]

Originally Posted by Greg

Wholesale reps are agents that represent lenders who sell or service mortgage notes. They work with brokers and bankers that use wholesale lending. They are a middle man selling the lenders services to brokers and bankers.

Retail Loan officers work for a company who has it's own products and are sold or serviced by that company. Most retail divisions spring up from wholesale lenders who want to originate their own business directly rather than relying on brokers to use them out of a very competitive wholesale market.

Mortgage Brokerages are companies using wholesale products solely.

A mortgage broker shop is simular to a real estate brokerage in terms of operational levels and management.

A Mortgage banking company is more like a large corporation in most cases. They often go public and have several divisions, corporate offices, and levels of management all reporting back to a VP.

In short....

Great post Greg. I've been in the lead industry for 4 years and I actually just learned something new.

Thanks,
Carlo

[macp]

1.macp
2.customer
3.lender
4.other
5.you

[Secret!]

The purpose of the wholesale rep has changed since about 1998. They used to be customer service personnel of wholesale lenders, assisting their employer's clients with issues they needed help with. Typically they were lunch buyers, donut suppliers, and basically nice friendly people who handed out rate sheets. Their Number One job was to protect their employer's portfolios from questionable mortgage brokers and screwy loans.

Since then, they have unfortunately turned into Big Commissions Mortgage Broker advocates, who often conspire with mortgage brokers to make square peg loans fit into wholesale lender round hole programs where they don't belong. Crazy wholesaler lending standards and greedy wholesale reps have significantly contributed to the mess the industry is in today.

[moranvitalea]

Secret,

Thank you for painting the entire wholesale industry in one broad stroke.

[Greg]

Ok I smiled!

But, I know what you mean Secret. Some are like this for sure. I do not feel it is the majority though.

I can say I have witnessed the "Here is the guideline how can we manipulate it? Do this Mr. Broker and I think it will close"

Secret you better go return that paint brush and buy a Crayola paint set so your brush is not so big. You are probably not in the right minset to laugh since you read the previous post first. Sorry

I doubt you meant to paint this over the whole industry though.

Mac I alternate #1 and #2 and in doing so I am rewarded. But, hey I guess that would be the same because I choose that to get more business so Maybe I am #1 afterall. :-)

[Secret!]

As I re-read what I said her Greg & moranvitalea, I see how you can read it like I meant ALL or MOST AE's are like that - what I meant to say is MANY, thanks for the opportunity to clarify what I said

[Greg]

Yeah sorry Secret. I figured you meant that. Looks like you got the right paint brush after all lol!!!

[snortle]

secret
man u post a lot. u got posts goin on here and outpost. Good info . I didnt know that there was an 'evolution' to the wholesale rep. I agree to a certain extent that they have become complete commission salesman. But they cant sell a file unless the underwriters agree......