Quote:
Originally posted by Rick Lee
Yes, we became an FSB on Jan. 1 this year. We are owned by GE, so there's not much of a liquidity problem there and the big shots swear to us that GE is in for the long haul and will keep WMC afloat for as long as it takes. But that doesn't do much for my personal situation. All of our niche products went away last week and our already high pricing just got higher. We may have less competition, but we have a lot fewer loans to fund too. One guy on my team had $8 million of his pipeline get killed for appraisal issues last month. I'm not much hurting for submissions, but every one I get gets killed for some reason or another and then the broker send the loan somewhere else and they always close it. It looks to me like WMC plans to have us rebrand the company in the marketplace. That's fine if you're getting paid for it. But making 100% commission and spending the next 6 mos. trying to rebrand and remarket the company is not gonna be a well paying job.
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I hear ya.
My GF is an AE for a subprime player (edited since she started screaming "DON'T MENTION MY BANK GDDAMMIT"! YOU'LL FRY MY BIZ!), and she gets her deals cut repeatedly. They're all using appraisals as the final way to control quality and I think it's a way to increase margin (A'la Accredited Home Lenders) -
she still has decent submission volume, but they are paying close attention to tax assessed vs. appraised value. Way of the market.
We still have the spring and summer purchase market coming up, fortunately appraisal cuts are rare on those deals -
It could be worse, you could be with New Century, for instance...
Any speculation on if Argent or NC is gonna drop dead this week? My money is on Argent...
rjp