Brokers’ share of mortgage originations is likely to grow as much as 5% in the next three years, an industry executive has said.
Following the financial crisis, broker originations dropped significantly, some say as low as 6%, but it has grown considerably since then. The figure is now in between 12% and 14% of the market, according to Dave Olsen at Access Mortgage Research. This is still peons to their originations pre-2005 era when they controlled more than 30% of the market, Olsen said.
Brokers’ have seen the “worst of the worst”, falling out of the marketplace following the financial crisis, said Dave Zitting, CEO of Primary Residential Mortgage.. But brokers are poised to take back a considerable amount of market share as regulatory changes finally settle in, he said.
To reduce the regulatory burdens of originating through multiple channels, Primary Residential Mortgage will continue to do 100% retail lending from its roughly 200 branches around the US, Zitting added.