Wholesale Reverse Mortgage Volume Down 7% in 2009, Financial Freedom Holds On

Wholesale reverse mortgage volume came in at 4,326 units in December, up 10% compared to November.  Bank of America took over the top spot in December with 963 units followed by MetLife (930 units) and Urban Financial/Reverseit (550 units).

Overall wholesale volume for 2009 was 58,935, down 7% from 2008.  The top wholesale lender for 2009 was a bit of a surprise. 

Despite seeing its volume drop 45% from last year, Financial Freedom still managed to bring in 10,230 units and remain the the top wholesale lender of 2009.

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Coming in behind Financial Freedom by only 100 loans was MetLife with 10,130 units.  With 67% of its production coming in from its fixed rate product, MetLife’s wholesale production was up 215% from 2008.

Of all the wholesale lenders, Reverseit experienced the most growth with 3,609 units.  The Tulsa, OK based lender’s wholesale business grew 241% in 2009.  Below is the list of the top 10 wholesale reverse mortgage lenders of 2009.

  Sponsor Name 2009 % Change
1 Financial Freedom 10,230 -45%
2 MetLife 10,130 215%
3 Bank of America 8,593 -1%
4 JB Nutter 6,621 -60%
5 Generation 4,076 206%
6 Genworth 3,651 164%
7 Urban Financial / Reverseit 3,609 241%
8 World Alliance Financial 3,268 -41%
9 Sun West 2,600 63%
10 Wells Fargo 1,844 204%

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  • FF is a huge surprise based on the false pronouncements of its demise earlier this year. They did very well. Congratulations to the management and staff of FF.

    • Financial Freedom originally had signed up thousands of correspondents, including many that rarely originated a reverse mortgage. FF wisely terminated its relationship with most of its brokers due to lack of acceptable volume during the transition period. Many of those firms, ours included, had issues with FF's pricing and service and shifted our business elsewhere. Others simply weren't committed to the RM business to an extent sufficient for the relationship to be profitable.

      Recently, we have been contacted by an FF rep to let us know FF is interested in reestablishing our relationship. 2010 promises to be an interesting year.

    • Wells Fargo does not seek wholesale business aggressively. They also have a practice of recruiting high-producing loan agents away from brokers by promising a base salary or draw as well as a stream of leads supplied by the bank's branch network.

  • Wells has always been focused on retail and not so much on wholesale. Even on the forward side this is true. They may slowly climb a bit on the wholesale but they won't jump tremendously. They take what they get.

  • Wells Fargo does not seek wholesale business aggressively. They also have a practice of recruiting high-producing loan agents away from brokers by promising a base salary or draw as well as a stream of leads supplied by the bank’s branch network.nnBank of America, which is more active in the wholesale channel, also is recruiting loan agents away from brokers in a manner similar to Wells Fargo. Our company has lost several originators to these two banks.nnUnfortunately, the new regulatory regime, including licensing of all non-bank originators, favors banks at the expense of brokers. Look for more brokers to merge or go out of business in 2010.

  • Wells has always been focused on retail and not so much on wholesale. Even on the forward side this is true. They may slowly climb a bit on the wholesale but they won’t jump tremendously. They take what they get.

  • Financial Freedom originally had signed up thousands of correspondents, including many that rarely originated a reverse mortgage. FF wisely terminated its relationship with most of its brokers due to lack of acceptable volume during the transition period. Many of those firms, ours included, had issues with FF’s pricing and service and shifted our business elsewhere. Others simply weren’t committed to the RM business to an extent sufficient for the relationship to be profitable.nnRecently, we have been contacted by an FF rep to let us know FF is interested in reestablishing our relationship. 2010 promises to be an interesting year.

  • Financial Freedom's numberss prove that once an originator is used to your software and forms even epically horrible service does not drive them away.

  • Financial Freedom’s numberss prove that once an originator is used to your software and forms even epically horrible service does not drive them away.

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