What Is the Attitude of Wholesale Lenders Toward YSPs?
The wholesale lenders who acquire loans through mortgage brokers view brokers as independent contractors who they cannot (and do not want to) control. While lenders will cease doing business with brokers who cheat them, they seldom if ever drop a broker for overcharging borrowers. Some have tried to cap broker compensation, but if the cap is tight enough to pinch, the brokers just shift to other lenders. Many lenders recognize a need for concerted action, but none are prepared to assume a leadership role because of fear of loss of business or concerns about anti-trust.
