Wholesale mortgage prices uncover true costs

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

(This is Part 1 of a two-part series. Read Part 2, "Amerisave helps borrowers find loan's retail markup.") Wholesale mortgage prices are those quoted by wholesale lenders to their clients -- mortgage brokers and smaller ("correspondent") lenders. (I will use the word "client" to cover both.) Clients mark up these prices to offer retail prices to borrowers. Wholesale price data have never been available to the general public. Each wholesale lender views its prices as proprietary information available only to those clients who have been approved by them to receive it. The Internet is now the principal method used to distribute wholesale prices, but usually a password is needed to gain access. The few lenders who don't require passwords probably assume that any borrowers who stumbled on their site would find the data so overwhelming that they'd quickly leave. Wholesale price data is extremely complicated. It takes time for clients to master all the pricing adjustments contained on any l...