In lending, the longer a lender has a loan in process, the less money is made on it. As a smaller lender, PHE Wholesale’s strategy for providing excellent pricing on our loans is to eliminate inefficiency in operations and fund loans as quickly as possible. Controlling our overhead, operational efficiency, and pricing flexibility is a key factor of that strategy.
Instead of pocketing that extra margin, we put it into our pricing, which means we can both keep our prices low and gain some price flexibility. This way, we —and our clients — can compete in a market where more than 80% of the business opportunity is being funded through direct lenders. We focus on finding ways to help our clients earn more of the larger piece of the retail loan origination pie.
There is no standard for competitive pricing. Every market is different, and the choice of lender-paid vs. broker-paid compensation affects your pricing strategies. Your Account Executive is available to discuss your compensation options and how your location may influence your choices. We support those brokers who commit to offering attractive rates for reasonable compensation.