RE:RE:RE:RE:What my spreadsheet is sayingI probably phrased it wrongly. What i meant was stickiness between the big players like HCG and EQB. My friends are mortgage brokers and I can tell you they dont give a damn whether its HCG or EQB because their underwriting process and requirements are pretty similar. And they do prefer these two big players because they have scale, funding and efficiency advantages. So yes there is stickiness in that way. That is HCG and EQB's moat.
Grisha6 wrote: Bluffy
I think you may not fully understand the market dynamics. There is definately a stickiness to market share. HTC's mortgages are sourced primarily thoiugh brokers nd therefore are not sold solely on rate. Otherwise Home would not need a sigificant broker relations staff. Brokers are looking at customer service type metrics as well as rate. These can include
1. likelihood of acceptance
2. types of documentation required
3. throughness of underwriting
4. likeliihood of making the close date
5. ease of use of the orignations portal (admin workload for brokers)
6. Commision rate (inlcuding sweeteners).
Brokers have enough problems in finidng quality clients, they don't need the hassle and uncertainty of dealing with too many lenders. Once a broker gets comfortable with one or a couple of lenders requirements and capabilities they tend to go back. And that is especially true in the B-side / Alt-A spaces.