Any idea why Costco shut down their mortgage lending services?

Question

Costco shut down their mortgage lending services earlier this year without warning.  It was conventional lenders providing their best rates but Costo capped their lender fees at $250 per loan, which was incredible.  Similar to Lending Tree but better, guaraneed low $250 lender fee and rates were all lowest for conventional loans.  They had plenty of lenders compeiting also.  I used their services many times but they shut it down now.  Just curious, if anyone knows any information on why they did.

Chris Seveney · Answer

@Sam Mathew

Most likely same reason other lenders are shutting down operations.

We are in the midst of a transaction crash. Over the past few years more and more people / lenders entered the fray and now treansactions are down over 20% YoY and will continue to drop due to interest rate environment.

Erik Estrada · Answer

A lot of lending companies are shutting down. Sprout mortgage went out of business and it was a reputable company. LoanDepot shut down their wholesale channel, not too long ago. Simply put, there is not enough business to keep them running.

At the same time you are seeing BoA trying to capture more business with their DPA program and Rocket just increased their conforming loan limits in my state. We are in a strange time now.