Home Point generated a quarterly funded origination volume of $9.3 billion, down from $12.5 billion in the previous quarter. The company, however, managed to grow its network of active broker partners by 10% year over year to 3,573 active brokerages.
“Focusing on the growth dimension of wholesale, the migration from retail to broker is accelerating. In 2021, 6,353 loan originators migrated from retail to broker, or 529 per month,” Newman noted. “Year-to-date 2022, the average is over 800, with July being the highest month so far as 1,022 loan originators migrated from retail to broker. In addition, interest in converting from retailer brokerage is skyrocketing.”
Read more: Exec’s move from Wells Fargo to Home Point another sign of wholesale lending’s growing appeal
Mark Elbaum, chief financial officer of Home Point, pointed out that certain nonrecurring expenses impacted the firm’s financial performance in a few key areas during the second quarter.
“The credit markets deteriorated during the quarter, which resulted in a material charge to our inventory held for sale outside of agency execution as well as our repurchase reserves,” he said. “In addition, our investment in Longbridge, which is in the process of being sold, had a material adjustment in valuation based on the same credit market conditions. Finally, regarding our MSR sales activities, the timing of which pools were marked compared to when the trades executed impacted GAAP accounting figures.”
