Brokers’ Increasing Influence Highlighted By The Loan Store Transaction

Mortgage News May 17, 2023

The Loan Store, based in Arizona, has witnessed remarkable expansion following its acquisition of specific assets from Homepoint’s wholesale origination channel, which occurred several weeks ago.

In a recent interview with Mortgage Professional America, The Loan Store’s president Brandon Stein said his company had some 900 approved mortgage partners nationwide before the transaction and more than 9,000 after the deal was consummated.

After laying off hundreds of employees, Homepoint opted to close its mortgage origination business and sell related assets to The Loan Store.

Following the completion of the transaction, The Loan Store experienced immediate benefits as a result of HomePoint’s loss. Brandon Stein highlighted that the transaction not only facilitated the expansion of The Loan Store’s presence in the wholesale channel, in which it had already been involved for over four years but also contributed to the company’s overall growth.

Moreover, the HomePoint transaction will lead to an expansion of The Loan Store’s geographical reach. Currently operating in 28 states, the company has plans to add 20 more states within the next year, according to Stein.

Stein suggested that the transaction has shed further light on the touted advantages of utilizing a broker, further emphasizing their importance in the industry.

Stein’s evaluation regarding the expansion of brokers in the wholesale channel is supported by relevant statistics. Data from the Nationwide Multistate Licensing System reveals that in 2021, a total of 6,353 loan officers transitioned from retail to join the independent mortgage broker community. Furthermore, during the initial nine months of 2022, over 7,000 loan officers made the switch from retail to wholesale lending. As of September 2022, the wholesale channel witnessed an increase of approximately 18,000 loan officers year-to-date.

In a previous conversation with MPA, Stein mentioned a product offered by his company that empowers brokers to actively target the purchase market by utilizing the equity in a home. This product rollout marked the initial significant undertaking following the transaction with HomePoint, according to Stein.

The Loan Store has also witnessed an increase in the number of brokers entering the wholesale channel. Stein mentioned that The Loan Store has received numerous inquiries from new brokers interested in becoming approved partners. The wholesale community greatly appreciates this surge of brokers, which further strengthens The Loan Store’s dedication to the wholesale channel and its capacity to offer wholesale products and services.

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