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Reverse Mortgage Companies See Opportunity in Wholesale

When JB Nutter announced it was suspending new submissions for its wholesale business, brokers scrambled to get files closed with other lenders and it lead to slower turn times across the industry.  While things seem to be back to normal at Nutter, its “hiccup” at the beginning of the year was a great opportunity for a few smaller or less well known wholesalers to pick up some business. 

“The problems facing Financial Freedom and JB Nutter, were a huge windfall for us,” said Josh Moran, Account Executive at Reverseit.  The Tulsa, OK based lender has been adding staff to support both its retail and wholesale business.  

Reverseit been able to build up a loyal group of customers who swear by its service and has seen its wholesale volume grow more than 400% over the last year according to data from RM Insight.  Nothing fancy, as its CEO, Bryan Hendershot, says, “We keep it simple – offer what works.  We are very aware that the number one thing brokers want to experience is fast and accurate service.”

Another company looking to expand its wholesale business is Live Well Financial.  The Richmond, VA based company has had a small wholesale business since late 2006, but until recently it hasn’t been much of a priority.  

Sine then, the company has enhanced its funding sources and upgraded the technology it provides to wholesale partners.  “Our Internet based technology platform, Genesis, allows our wholesale partners to originate and process loans seamlessly through underwriting, closing, and funding–entirely free of charge,” said Michael Hild, CEO of Live Well Financial.

At a time when brokers are concerned that wholesale might disappear in the future, Live Well Financial hopes to be a source of added strength for the industry during these unprecedented times. “Unfortunately for many small lenders and those who are large for that matter but are distracted by massive credit related problems, the next year is going to be very difficult.  Some will not survive the unprecedented chaos in the marketplace,” added Hild.   

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