HSBC is reportedly withdrawing from the mortgage broker channel, effective at 6pm ET / 3pm PT today.
There has been no press release or reasons provided as of yet—only an email sent to brokers.
Certain industry insiders have seen this coming for a while.
- HSBC has taken steps to bolster its in-house sales force
- They’ve been running high-profile branch-level promotions without including brokers (Yes, they had broker promotions too, but the branches reportedly had discretion to match them.)
- They had been advertising solely posted rates–instead of discounted rates–for the last several weeks (basically telling the broker community that they didn’t want any new business). Interestingly enough, however, “status” brokers were still being offered great rates by HSBC all during that time.
We’re hearing word that this news affects all but a core number of brokers that send considerable business to HSBC.
We’ll report back with more info as we get it, and would love to hear comments from brokers with additional insights.
I touched base with a contact at HSBC just the other day and his comment was; “That for the last few weeks they’ve had a ton of declines coming back to his branch from the HSBC underwriting centre, deals that normally would fly right through”. He intimated even bigger movement then what you have suggested. Interesting!!!
I remember having to wait 4 weeks once for an HSBC commitment. Oh how fondly I will miss them.