Mortgage brokers are expected to be "an important conduit" for alternative products as borrowing becomes tougher
Mortgage brokers are expected to be "an important conduit" for new products.
That's according to Speculates Carrington Mortgage Services EVP Rick Sharga. With the CFPB expected to clarify new QM rules in the next few months, Sharga has said there could be a downturn in broker business in the short term. But the good news is that fair play originators will still own an important niche in the supply chain as new products hit the market.
“Brokers will be an important conduit to carry alternative products for nonbank lenders who enter the market,” Sharga said.
This is in part, he said, because of the nature of mortgage brokers and their dedication to working with several partners to find the right solution for the borrower.
“As a borrower, it’s painful to try to get a loan right now,” he said. “Mortgage brokers are the hardest working when it comes to getting that borrower their loan.”
The mortgage broker community was one of the last remnants of the “Wild West,” Sharga said, but the industry saw most of the “characters” exit during the downturn.
“What you’re left with are seasoned professional who were always trying to do the right thing and got a bad rap from those who were playing the game,” Sharga said.