Lenders are gaining steam by offering a growing number of products under one roof

Kurt Mason and Todd Kesterson, divisional sales managers, Novelle Financial Services

As published in Scotsman Guide's Residential Edition, September 2005.

One-stop lending is something many of us have heard of or even dreamed about. Lenders who offer a growing number of mortgage products under one roof could spell relief for brokers — especially in a marketplace where the gap shrinks between prime and nonprime mortgages and lenders continue introducing new, specialized products.

With one-stop lending, brokers no longer need to negotiate with 30 different bankers for 30 different loan products. They can approach only a handful of lenders for all of their loan needs, be they prime, Alt-A, nonprime, correspondent lending or warehouse lending.

To understand one-stop lending’s benefits for brokers, it helps to define the market forces that have birthed it, the advantage of working with one-stop lenders and how their growth can change the broker-banker relationship.

Where did this come from?
Despite being a relatively new concept, one-stop lending is gaining popularity among large mortgage banks, many of whom now advertise themselves as “one-stop lenders.” A big reason: competition.

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