Online Wholesale Lending Shows Sharper Growth than Consumer Use of Channel
NEEDHAM, Mass. - Online wholesale lending in the United States grew from 15% of total mortgage loan origination volume in 2001 to 20.5% in 2004, while online retail grew from 3.5% to 7.3%, according to TowerGroup. Both are expected to continue an upward trend, according to new research from the think firm, which says that wholesale operations (including such things as electronic loan product and rate distribution, loan file submission from broker to lender and automatic underwriting services) are more productive for mortgage brokers who perform such transactions several times a day than they are for individual consumers, who typically obtain home mortgages infrequently. This chart shows the growth in such online activity.