If a wholesale channel closes in a forest and everyone is too busy to care, does it make a sound? Does anyone hear it? It sure does and I hear it loud and clear.
BoA is out, gone, done, finished with wholesale. Of the large lenders, that leaves Wells Fargo to stand alone. And how long are they going to allow themselves to be picked off? How much market share do they want from this channel? Bottom line is no lender wants to be left standing alone and it's likely only a matter of time before Wells announcement comes. That'll leave the "tier 2" lenders to dominate the space, good luck! This decision by BoA could be just the first domino to fall for the wholesale channel.
And what's to become of the talent currently working in wholesale? Here's a hint - some opportunistic bankers are going to win the lottery...as long as they're quick and have a strong gameplan to integrate these originators and their volume. Most are too busy and focused on the refi boom to hear the BOOM that hit the industry last week.