Wholesale lender lifts the lid on the company's "difficult decision"
California-based Mountain West Financial said Thursday it has made the “difficult decision” to step back from wholesale lending.
Founded in 1990, the company started as a small mortgage broker, then grew to a multi-channel lender supporting retail and wholesale, which accounted for 15% of its volume last year. Mountain West has partnered with other companies and vendors, operating under several DBAs, including Redlands Mortgage Loans, Home Mortgage, CA Refinancing, and San Bernardino County Mortgage Rates.
Mountain West announced on its website that all submitted loans must be locked by Friday, August 26, and all loans must close by September 30. The lender originated approximately $1.9 billion in 2021, according to Inside Mortgage Finance’s database.
“Through this transition, we are committed to remaining transparent and honoring all loans in your BOLT pipeline that have been submitted,” the company wrote in the announcement. “You and your clients can expect the same high level of service that you have received from Mountain West since day one.
“We appreciate and are grateful for the partnerships forged and the opportunity to have served you and your borrowers throughout the years. It has been our pleasure to partner with you, and we wish you nothing but continued success.”
Read more: Homepoint unveils major change to pricing strategy
Meanwhile, wholesale giants United Wholesale Mortgage and its rival Homepoint are in an all-out war. Faced with shrinking margins and tight competition, UWM slashed its rates across the board by 50-100 bps, while Homepoint dropped the price of its conventional loans by 75 bps.
