By all accounts it seems the banking lobby got everything they’ve asked for from Congress and in doing so may have legislated mortgage brokers out of existence.
During the 70’s and early 80’s, banks dominated origination’s carving out a whopping 80% of home loan applications. Brokers quickly picked up the slack and by the early 90’s the numbers reversed. The market, especially real estate investors, liked the idea of a personal mortgage broker who understood their goals scouring the landscape for the best products and rates.
Banks have never been known for the best customer service or pricing and the public punished them by fleeing to the broker community. During this time brokers enjoyed about 80% of all origination’s leaving the crumbs for the banks.
How times have changed.
National Mortgage News reported last month in a survey recently completed, mortgage brokers are now only receiving 18.9% of the origination Q3 market place. This paltry percentage of origination’s is an all-time low figure. Mortgage broker market share reached almost 80% just a few short years ago.
What are your thought’s on the mortgage broker industry? Will they be on America’s endangered species list?