This issue of TNR is packed full of great content ? including our feature article on FHA Streamline Refinances by Leslie Petersen, the industry guru on FHA/VA and conventional guidelines. A loan originator cannot survive without having FHA or VA in their portfolio of product offerings. This article gives great insight to one of the best programs on the market. It has been reported that correspondent lending is rapidly growing while wholesale mortgage brokering is rapidly decreasing. This seems quite obvious with Chase recently shutting down their wholesale operations. I believe the small broker is getting squeezed out. To remain competitive in this market these same small brokers are joining correspondent lenders as net branches. By doing this, they are now able to compete with retail lenders but must now also carry a substantial about of risk on their shoulders, sometimes referred to as ?skin in the game?. I won?t go in to all the associated risk because it differs from company to company but I will say this is not a bad thing; in fact, it will help to cleanse our industry of the ?bad apples?. I am not saying the small broker is dead, only that there is a popular transformation occurring that preserves our competitiveness. Along with this transformation, be ready for much more change in terms of compliance and regulation. This is going to be a bumpy ride, but know that your services are needed and be ready to adapt. Build upon relationships and put the customer first. If you are interested in learning about net branch/correspondent opportunities, please visit our online forum at TheNicheReport.com. The thread is titled - Net Branching & Correspondent Lending. There are a number of reputable companies already listed for you to begin your research. If you happen to already belong to a net branch/correspondent lender please feel free to post about your experience and offer helpful tips for those searching for a home. Keep up the fight, Robert Pegg
