One of the largest providers of mortgages to mortgage brokers has decided to exit the correspondent lending business.

This will eliminate funding sources for a large population of mortgage brokers and small banks, further constraining the supply of mortgages to consumers. Credit unions may also be affected my this move. I expect Wells Fargo may soon follow. Its my opinion this is a direct result of the Dodd Frank bill, and feel you will continue to see more lenders exit the market. Consumers should be aware of the shackles this legislation places on lending institutions. Banks are deciding allocationg capital to mortgage lending isnt the best use of thier capital right now. Especially if it is in short supply. Hopefully Congress will become aware of the unintended consequences of this ill concieved legislation and abolish it. Read the full story here

-Mike Clancy