Does BRAWL Have A Valid Argument Against "Whole-Tailers" ?
There has been a new organization of brokers forming and together, BRAWL (Brokers Rallying Against Whole-tail Lending) is being very vocal about its concerns. If you missed it, Rob Chrisman discussed the topic in an in-depth post on December 16.
With his report on BRAWL, Chrisman also left a few key questions on the board.
"The BRAWL initiative is attacking some wholesale lenders. And some of the ‘good guys’ are marketing their support for the brokers by referring trigger leads back to them for brokers benefit," read Chrisman's post.
"But they should be asked, does your company service loans, and if so, what percent of originations? If you use a sub servicer, does that sub servicer have a portfolio retention dept? Does your company sell servicing? If so, how much of your originated servicing in the last year have you sold?"
Chrisman also insisted that the answer to the last question may be very surprising. After his analysis, Chrisman urged brokers to take the time to learn the true economics of the business, without simply going forward with the opinions of the group.
With representation of both sides of the arguments Chrisman has laid out a clear explanation of BRAWL's issue with the "whole-tailers" and why they may want to reconsider their stance a bit. To read more about BRAWL and learn more from Chrisman, click on the image above.