United Wholesale Mortgage released some data recently looking at the current industry challenges and a comparison of retail and wholesale originations.
Industry turn-times are the biggest challenge currently with most lenders taking 47 days 52 days to close a loan. This is causing major discomfort with borrowers, buyers, sellers, realtors, and loan staff. Most major lenders are trying to staff up but they are just taking underwriters etc. from other lenders and moving to another lender; it’s not really adding capacity.
That said, most of our loans are closing in 25 days or less and about 50% are closing in less than 15 days. We have other loans taking 60+ days as well with certain lenders. It really depends on the loan and the ender.
In August of 2020, the average retail rate was 3.14 and the average wholesale rate was 3.06. So the wholesale broker channel is closing l=with lower rates. These rates still see pretty high! It’s usually an investment property or a low-cost loan, or a credit issue to get that rate.
Speaking of credit, the average credit score for wholesale is 753, and for retail, it’s 747. Technically speaking the higher the credit scores the more qualified you are so the broker channel had better-qualified clients, better rates, and faster turn times.
Better rates, faster turn times, where better-qualified borrowers are turning to the broker channel.
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