Home >> Daily Dose >> Mortgage Brokers’ Share of the Market Rebounding
Print This Post Print This Post

Mortgage Brokers’ Share of the Market Rebounding

Mortgage Industry

CoreLogic reports that the mortgage brokers’ share of conventional conforming mortgages rose to 16% in 2019, which more than double what it was from its low of 7% in 2011.

“The loan-quality reputation of the broker channel had fallen during and immediately after the Great Recession as foreclosure rates jumped, leading some lenders to stop offering credit through brokers,” CoreLogic said. “The broker market share started to decline after 2008, but has gradually rebounded in the last couple of years and those loans are performing much better than the pre-crash loans.”

The share of mortgages from mortgage brokers peaked at more than 30% in 2007 before the Great Recession, and a year later fell to around 10%. 

Anthony Casa, Chairman of the Association of Independent Mortgage Experts (AIME) told MReport earlier this year that brokers are seeing a renewed life in housing. 

“For the second year in a row, mortgage brokers are better,” Casa said. “One out of three millennial homebuyers now partner with a mortgage broker to help them finance their first home. Millennials are doing more research and finding mortgage brokers provide more savings, personalized service, and no fees.”\

Casa said millennial homebuyers will push brokers into the fourth-largest lending force, by volume, by early 2020.

More than 70 million millennials still do not own a home, and are using brokers to help them find the best deal on a loan, Casa said. 

“The big reason why that's happening is, the starter home price is fairly high, and many millennials are coming into the market and not able to find a property in their price range that they really desire, coming out of their are rentals,” Casa said. 

He added that working with independent brokers creates an opportunity to help first-time buyers get the property the want, or the ability to borrow at lower interest rates, as brokers can deliver “at least a half a percent lower” than most banks and lenders. 

Utilizing brokers for millennial buyers can also help them get into the home they want without paying the traditional 20% down payment, Casa said, adding that the average down payment for a millennial homebuyer over the past two years has been about 5%. 

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.