Wholesale Leaders – December 2009

As we offer up the last of our 2009 Wholesale Leaders report, it is perhaps fitting that in the year of “too big to fail” we ended with yet another counter-trend uptick in broker/wholesale volume. December saw broker/wholesale volume grow 10.9% from November, compared to a 3.1% growth for direct lender’s “retail” volume.

Despite continuing (and maybe growing) advantages for large financial institutions during the year, we’ve seen broker/wholesale reverse mortgage loan volume outpace direct lender “retail” activity in all but 1 month (March). Sure, broker/wholesale volume started the year with an advantage here given that it comprised 55% of 2008 loans, but 2009 remains a very respectable showing regardless.

The disparity introduced by the early availability of fixed rate product through broker channels is at least partially responsible, but perhaps the demise of brokers has been oversold? Time will tell (and we’ll keep you posted through these reports), but at least in the first round of our new world financial order, the brokers have survived to see another year.

A few other highlights from the full report:

  • Broker/wholesale volume comprised 52.7% of all 2009 loans, down from 55.1% in 2008
  • All four of the largest wholesale lenders in 2008 (Financial Freedom, JB Nutter, Bank of America and World Alliance Financial) saw broker volumes decline in 2009, as the industry broadened to include both more wholesale lenders and a more even distribution of volume amongst them
  • Notable wholesale winners in 2009 include:
    • Metlife – up 156% to finish a close 2nd for the year to longtime leader Financial Freedom
    • Generation – up 209% to finish 5th
    • Genworth – up 242% to finish 6th
    • Urban Financial – up 170% to finish 7th
  • It’s a testament to just how large a lead Financial Freedom’s wholesale business enjoyed to see them still come in number 1 after 2 consecutive years of over 40% declines in volume.

Click the image below for the full report.

Wholesale Leaders