“But when rates rise and demand disappears, the procurement market becomes more normalized,” he said, pointing out that capacity has been brought in line with reduced volume flows.
He added that while the larger lenders benefit from these conditions because they have a cost advantage, it also creates an imbalance.
He said, “We don’t want to see a winner-take-all concept — it’s bad for wholesales. Because if you think about what that means, it’s just retail. ”
Wholesale lending offers many advantages over retail, including better adaptability and faster innovation, argued Shoemaker, who also spent time building retail for direct consumer platforms prior to joining Homepoint.
But, he said, having just a few major players dominating the market, one of which is Homepoint, reduces brokers’ options.