Latest On The Death of Mortgage Brokers

Mortgage brokers have always been quick to point out that rumors of their death are greatly exaggerated, but the stats on mortgages done by direct lenders vs. brokers suggest otherwise. National Mortgage News reports that:

The wholesale/broker loan channel accounted for 11.6% of originations in 3Q, compared to 10.5% in the second quarter, a period in which broker-sourced loans fell to an all-time low in terms of market share. In 3Q all mortgage bankers funded $444 billion of product, the industry’s best quarter since the second quarter of 2009.

The top three wholesale purchasers were Wells, Provident (CA), and US Bank. The survey showed that retail production was about 47% of volume, and correspondent production (loans made by mortgage bankers then sold to bigger retail firms) was 41%—but mortgage bank production includes brokers allowed to fund loans through those mortgage banks, so there’s a bit of grey area on counting. As for a more black and white count on the broker business: the National Association of Mortgage Brokers has roughly 5,000 members compared to 25,000 four years ago.