Northpointe Bank Joins The Exodus Of Lenders Leaving Wholesale Lending And Correspondent Lending
Northpointe Bank announced that it is exiting correspondent lending. The bank announced today that the last day to lock or relock a loan is on February 17, 2023, by 5:00 ET.
Northpointe also stated that the absolute last day to fund a loan will be on April 28, 2023.
Executives also added that there will be no exceptions other than a previously locked loans. However loans with an original expiration date beyond April 28, 2023 may be exempt on a case by case basis.
Northpointe also stated that effective immediately, the maximum lock term for a new lock is 60 days.
All terms of the Loan Purchase Agreement and Correspondent Lending Guide remain in full force. This also includes but is not limited to billings and repurchase demands.
Northpointe Bank added that they remain committed to retail lending and warehouse lending. They also stated that if brokers have any questions, to please reach out to them at clientrelations@northpointe.com.
Northpointe Bank joins a long list of lenders and banks exiting the corresponding and wholesale lending arena. Lenders have been exiting the wholesale lending arena in droves over the past year. This primarily due to the shrinking housing market and the Fed raising interest rates.
Another reason why lenders are pulling out of wholesale lending is the aggressive marketing by United Wholesale Mortgage. UWM has been the only wholesale lender to see profitability in the past four quarters.
UWM is killing it in the wholesale mortgage arena right now. They are even crushing their main cross town rival Rocket Mortgage. Things are so glim at Rocket Mortgage that Dan Gilbert is contemplating selling his crown jewel.
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