Benchmark shuts down wholesale division Eleven Mortgage, says it will focus on retail
The company announced the wind-down of its wholesale and correspondent channel
Benchmark, a mortgage lender, has decided to shut down its wholesale division, Eleven Mortgage, and focus on its retail operations. This move signals a strategic shift in the company's business model, likely in response to changing market conditions and increasing competition in the wholesale lending space. By concentrating on retail, Benchmark may be able to better control its costs, improve customer relationships, and adapt to evolving regulatory requirements.
The shutdown of Eleven Mortgage will likely have a ripple effect on the construction industry, as wholesale lenders play a crucial role in providing financing for builders, developers, and other industry stakeholders. With one major player exiting the wholesale market, construction firms may need to adjust their financing strategies and explore alternative sources of capital. This development could also lead to increased consolidation in the mortgage lending industry, as companies seek to optimize their operations and focus on core competencies.
As the construction industry continues to navigate a complex and often unpredictable market, it's essential to watch how Benchmark's decision impacts the broader mortgage lending landscape. Will other lenders follow suit and shift their focus to retail operations, or will they double down on wholesale and correspondent channels? Additionally, construction firms and developers will need to monitor the situation closely, as changes in mortgage lending can have significant implications for project financing and overall industry growth.
Originally reported by housingwire.com. ConstructionNews adds analysis for real estate & property readers.