New Broker Research Published
For Release August 17, 2007
Wholesale Access announced today that it had completed Mortgage Brokers 2006, its eighth examination of the mortgage brokerage business and industry since 1990. What was published is a statistically-valid analysis about major aspects of their business and industry along with detailed statistical tables. Also included is the final sampling frame of over 50,000 mortgage brokerages used to complete the more than 2,000 surveys analyzed in the report. As in all earlier studies, five areas were examined: brokerage demographics, their use of technology and the Internet, products, key prime and nonprime wholesalers and brokerage operations.
The purpose behind this series of reports is to examine how mortgage brokerages operate. Once again, Managing Director and project director Larry Pearl developed the sampling frame, designed and field tested the short survey, drafted and fielded the long survey, oversaw surveying, prepared project status updates for study co-sponsors and compiled and reviewed the hundreds of tables for analysis. Each step was tested, validated and quality controlled to assure statistical validity. As in the earlier studies, co-sponsors had input into the survey questions.
Deliverables again consist of a CD with the names and addresses of all verified operating brokerages and all the raw data from the two telephone surveys (file structured for micro analysis). Tables and analysis total approximately 400 pages. The study’s database will allow competitive and product analysis that can be cut by region and size of firm.
Among the major macro findings are these: all combined, brokerages accounted for 58% ($1.7 trillion) of last year’s total origination activity; the average firm produced $32.4 million (151 loans) with a mean of 7.1 employees; employment at the nation’s brokerages totaled approximately 375,000; conforming loans accounted for 48% of brokers’ production volume; the most used wholesalers were Countrywide (for conventional loans) and New Century (for subprime loans)—and why brokers used them; brokers remain big users of current technology, which has allowed them to reduce firm size without sacrificing excessive volume and productivity.
Mortgage Brokers 2006 was sponsored by American Brokers Conduit, AmTrust Bank, Aurora Loan Services, Bank of America Mortgage, Calyx Software, Chase Home Finance, Citicorp Mortgage/ABN Amro, Countrywide Home Loans, Ellie Mae, Fannie Mae, First Magnus, Fifth Third Bank, Freddie Mac, GreenPoint Mortgage, Homecomings Financial, HSBC/Household/Decision One, IndyMac Bank, MGIC, National City Mortgage, Scotsman Guide, SunTrust Mortgage, Vertice (AmNet), Washington Mutual (WaMu) and Wells Fargo Home Mortgage.
Wholesale Access Mortgage Research & Consulting, Inc. is a research, advisory and publishing company founded in 1991 by David Olson and Tom LaMalfa. Its business is focused exclusively on mortgage finance. In addition to two separate revenue and expense benchmarkings, the firm does various customized research projects. Current study topics include the home equity market and broker product trends. Later in 2007 the company will embark on its third examination of correspondent lenders, their business and industry. For further information, visit the Wholesale Access website at www.wholesaleacccess.com or call (410) 772-1161.