Brokers Rallying Against Whole-tail Lending
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BRAWL (Brokers Rallying Against Whole-tail Lending) is a group of independent mortgage brokers dedicated to ending the practice of “whole-tailing” — retail lenders using their wholesale divisions to steal our hard-earned business. We believe that independent brokers are best for borrowers and that true wholesale lenders are the only choice for brokers. Tired of whole-tailers turning your clients into their leads? Join the fight today.
- Independent Mortgage Brokers
Independent Mortgage Brokers
In our business, there are wholesalers and there are retailers. Retailers have their place. But as independent mortgage brokers, we know that wholesalers are best for us and we are best for borrowers.
Whole-tailers, on the other hand, aren’t good for anyone but themselves.
What are whole-tailers? You know them well. They’re the lenders who appear to offer both wholesale and retail services, when the truth is that their wholesale divisions exist for one reason only: to feed their retail machines. THEY’RE NOT OUR PARTNERS. THEY’RE OUR COMPETITION. Whole-tailers use wholesale lending as a lead-generation tool. They are literally buying our customers for life for a one-time payment of just 25 bps or $400 less in closing costs to our borrowers. (Soon to be their borrowers.)
Think that’s a fair price? Think about this. Most whole-tailers have huge marketing departments with hundreds of people dedicated to feeding their funnel with leads. They could buy those leads at great expense on the open market, but why pay what they’re worth when they can steal them from us for less than a penny on the dollar? They don’t care about that first loan. They’re focused on the second, third and fourth loans from our customers. They count on us to feed the machine.
The worst part is, we’re not completely innocent in this. We hand these whole-tailers our borrowers names, phone numbers, email addresses and more — and when they pull credit for a new purchase or refinance, whole-tailers steal our business before we even know our hard-earned borrowers are back in the market. The most generous ones might give us three days first.
Wholesale lenders, on the other hand — true wholesale lenders — are 100% focused on promoting the success of independent brokers. THEY WANT US TO SUCCEED BECAUSE THAT’S HOW THEY SUCCEED. So they look out for our interests, keep us informed, and provide everything we need to deliver a great loan and a great experience to our borrowers. They also give us the tools to compete with the corporate retail lenders, banks and yes, even the whole-tailers, who call us middlemen behind our backs and sometimes right on their home pages. And since there’s no guarantee that we’ll bring them another loan, true wholesale lenders earn our business every day by delivering a level of service and expertise that’s worth a whole lot more than 25 bps.
Let’s get to the truth about lending. Whole-tailers are stealing our customers, but we’re the ones handing them the keys to the front door. Let’s pledge to partner only with true wholesale lenders until the whole-tailers put an end to their selfish and greedy ways. Let’s work together in the in the best interest of our borrowers and ourselves. Let’s keep wholesale true.
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