“There is some room in the government space and some flexibility, but as far as getting out of it, that’s not what we’re focusing on. We’re not going into non-QM programs. We will continue to focus on what we are doing.Unfortunately it is a closed market.Let’s see what happens in the market little by little.”
The crisis is exacerbated by the difficulties many wholesalers are experiencing. Last month, Fitch downgraded two of his companies, Provident Funding and Finance of America. This comes just weeks after the abrupt closure of Amerisave Wholesale Mortgage Solutions and Suburban Mortgage. And they weren’t alone this year.
Other banks like Homepoint, the nation’s third-largest wholesale lender, have been forced to lay off employees. Meanwhile, Freedom Mortgage, which ranks as one of the top government-guaranteed lenders in the country, recently had its outlook revised to Negative by Fitch.
read more: Fitch downgrades lender’s rating
Mel admits this is an industry-wide problem, going so far as to say that the current market conditions are almost as difficult as they were after the 2008 crash.