Brokers Lose Out as Lenders Increasingly Shift Production Focus to Retail Channel
May 19, 2011
The mortgage broker industry saw a huge decline in new origination volume during the first quarter of 2011 as lenders appeared to focus on shoring up their retail channels in the face of a major slowdown in new lending volume. A new ranking and analysis by Inside Mortgage Finance reveals that the mortgage broker share of the market fell to a record low 7.1 percent during the first three months of 2011. Broker originations plummeted 59.6 percent from the fourth quarter to a record low of just $23 billion. In fact, the top three lenders in the market each generated more retail production than the entire broker channel did during... [Includes four data charts]
The new FHFA director’s whirlwind first week resulted in widespread staffing cuts at the regulator and a dramatic change in leadership at the GSEs. So far, criticism has been muted.
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