“Don’t forget that the mortgage broker stayed there,” White said. “I think when the regulatory agencies and Congress look at this, they should remember that the mortgage brokers were there. The banks went away from the business because they chose to go away from the business. Even in the past five or six years, they totally went out: no jumbo financing, no alternate finance, no first-time homebuyer, private programs, no wholesale side at all, and they went totally retail.”
However, with the continued growth in the broker channel over the last few years, White believes the banks are having second thoughts about departing the wholesale space.
“I think they probably realized that that’s a mistake, because the channel in the broker community has 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 think that has to be cautiously moved on, and I think it will. But overall, I think it opens up the channels for everyone, and the more people in the industry properly regulated, the better off we are.”
While there are many long-time brokers who would welcome banks back into the wholesale channel, it doesn’t mean they’re going to forget the impact when they left it.
“They did shrink in their market because the mortgage broker stepped in when no one else would,” White said. “We provided the people who needed the homes the most, their homes. We were there when it was hard. We were there trying to help people recover and getting them mortgages when the banks wouldn’t give them a mortgage.
