Point Mortgage Joins The Mass Exodus Of Lenders Exiting Wholesale Lending. Company Says It’s Only Temporary
Point Mortgage is joining other lenders in a mass exodus out of wholesale lending. The company has decided to shut down its wholesale business GoPointDirect and lay off employees to focus on retail lending.
CEO Johnny Margarini told Housingwire:
We have temporarily taken it down. When business picks back up, we’ll revisit wholesale. But for now, to be proactive to the way the market is, it’s best that we stop our wholesale operation.
The company will honor and close the existing loans locked in the pipeline of GoPointDirect.
Margarini said seven employees working directly in the wholesale division were laid off. He did not provide more details regarding their last paychecks and severance payments.
Margarini also said that the wholesale division represented around 3% of the company’s business. As a result of market conditions, Point Mortgage has decided to concentrate on their retail channel.
The NMLS shows The company had 177 sponsored mortgage loan officers. The company is also licensed in 28 states as of September 13, 2022.
Point Mortgage offers conventional, FHA, VA and USDA loans.
The mortgage tech platform Modex indicates the company originated $1.23 billion over the last 12 months.
Point Mortgage faced a shrinking mortgage market like other lenders.
The company also faced other challenges in the wholesale market. Namely, the aggressive pricing strategy from United Wholesale Mortgage. UWM launched an aggressive pricing initiative in June called ‘Game On’ pricing initiative. The initiative slashed prices across all loans by 50 to 100 basis points.
Point Mortgage joins lenders joins the exodus of lenders leaving the wholesale market. loanDepot, Mountain West Financial and AmeriSave announced they are exiting the wholesale channel. They all claim they want to focus on more profitable divisions for their businesses.
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