Being a Mortgage Broker Ain’t What It Used to Be
Way back when (that would be before the credit crisis) mortgage brokering was a good gig. The financial risks were minimal, the licensing requirements scant, and the business flowed in.
No longer. Mortgage brokers enjoy far fewer originations these days than during the pre-crisis golden years.
Some recent data:
Mortgage brokers, who have watched their share of new mortgage business tumble ever since the credit crisis began in 2008, continued to lose ground in the second quarter of this year. According to new numbers compiled by Inside Mortgage Finance, the broker share of new originations slipped to just 10.0 percent in 2Q10. That was not only down from 10.9 percent in 1Q10 but also the lowest level ever recorded by Inside Mortgage Finance. Back in 2005, the mortgage broker share peaked at 31.3 percent. The decline in mortgage broker activity over the past three years has corresponded with a rise in both retail and correspondent originations. Both channels hit 10-year highs in the second quarter.
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