Chase (Conforming, not sure about USDA) is exiting wholesale in 60 days.  They will take new submissions for the next week or so, but after that they are out.

They may take submissions, but will they close them?

They couldn't close them before the announcement.

Jason Zimmer:

Chase (Conforming, not sure about USDA) is exiting wholesale in 60 days.  They will take new submissions for the next week or so, but after that they are out.

Still getting stuff on USDA from them, so I don't think that part of the biz will go away soon.

This came from Chase yesterday.  I'm not sure if they are getting rid of USDA, but it says they are getting rid of all broker originations.

A Message to Our Customers from Patrick Sheehy and Saber Salam

Home lending remains an integral part of our firm's overall financial strategy, and as such, we have a responsibility to our customers, shareholders and employees. Over the last two years, we have diligently reviewed and adjusted our home lending strategy and practices to address the unprecedented challenges of today's market. Today, we are announcing a strategic shift that we believe will serve our business and our customers well for the long term.

Moving forward, we have decided to focus on loan originations through the Chase bank branches, our Consumer Direct business, and retail-originated loans acquired from Correspondent lenders. Our new strategic direction is supported through the recent merger with Washington Mutual, which increased our bank branch inventory nationwide and enables us to serve nearly 70 percent of the American population.

As a result of our strategic decision, we will no longer accept any new locks and registrations from or purchase any loans originated by brokers effective Friday, January 16, 2009. As a result of these decisions, we are closing our Wholesale business. 

We continue to purchase retail-originated loans through our Correspondent business, which includes our Warehouse Lending unit. Our Rural Housing program remains unaffected by this change.

This decision has been an extremely difficult one, but in this current environment, we feel it is the most prudent one to make.

Attached is a bulletin to our Wholesale customers which outlines the business specifics of this change. Please review the document in detail as to any impacts to you and your business process with Chase.

On today's Chase RH rate sheet...."Chase Rural Housing will continue to work with mortgage brokers and was unaffected by the Chase home lending restructuring of the wholesale channel."

Jason Zimmer:

Chase (Conforming, not sure about USDA) is exiting wholesale in 60 days.  They will take new submissions for the next week or so, but after that they are out.

This is not really new news, I read something about Chase exiting wholesale back in Nov 08.  We only use chase for the USDA RD loans so it did not really matter to us.

In some ways it's not new news, but in other ways, very new.  Chase exiting wholesale purely as a broker direct lender would not be such a big deal.  The bigger deal is that this affects ALL broker-originated business, even that which comes through TPO (third party origination), so you get emails like the one we got from GB mortgage saying they couldn't fund any more January deals!  Any other mid level lenders that were selling to chase will be vastly impacted. 

What Matt said need to be taken very seriously and watched closely. There are not many servicers left for 3rd party originations. We need a list so we can keep an eye on our contracting industry. Citi's move to only keep the cream of the crop may become more common. I recommend keeping pull through and quality of files very high with your favorite lenders. I've already been put on "restricted lock" with one of my wholesalers. There has been many rumors floating around that Well's is considering exiting wholesale. If they do, will they do it the same way as Chase?

Here are all the TPO servicers I can think of:

Wells Fargo, Countrywide, Flagstar, Citi, SunTrust, MetLife, BB&T, TBW, Everbank, US Bank, GMAC, 5/3rd ?, Litton/Avelo, Wachovia (Vertice) soon to be Wells....uh oh.

Please add to the list. I would love to be a fly on the wall inside of lenders like FAMC, Sierra Pacific, Plaza, APB, etc. These are some pretty big operations and they deliver all loans in bulk with servicing released.

On another note, Equifirst is going to offer conventional soon. I have closed about 6 FHA deals with them and I have nothing to complain about. Their pricing is pretty good too. I have no idea who they sell servicing to. They used to service themselves but I don't think they do for FHA deals.