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from Local Attorney, Michael H. Wasserman

Thursday, September 10, 2009

Who is (is not) Likely to Provide your Next Mortgage Loan

Sitting around the closing tables (business may be slow, but i do close every now and then) I have been noticing far fewer buyers using mortgage brokers to close their loans lately... and far fewer brokers still in business.

Consolidation and tough, tough market changes are taking a toll on that segment of the money lending industry. How bad is it? Check out this report from National Mortgage News:

The dollar amount of mortgages funded through loan brokers hit a new low in the second quarter in terms of market share — just 14.9% of all originations. Wholesale lenders tabled funded just $87 billion in loans in Q2, out of a total origination pie of $583 billion. Loan brokers' dominance of mortgage lending peaked in the fourth quarter of 2007 just shy of 30%

Business volume cut in half over the last 18 months? yikes!

On the bright side, the brokers who are surviving seem to be doing very nice loans for my clients. The processing times seem to be running shorter than the retail lenders. The "hassle factor" right now seems to be FAR FAR lower too. The retails tout low costs and low rates, but my gosh, can it possibly be worth the aggravation and delays that borrowers must endure to get there? (no.)

If you are in the market for a new home, or have a client or colleague who is, I will be more than happy to introduce you to the survivors - and to the opportunities they afford.