Broker Market Share Continues to Fall

Table funding using mortgage brokers accounted for just 16.6% of all new residential loans originated in the fourth quarter, the lowest on record since National Mortgage News began tracking originations 15 years ago. As recently as mid-2007 wholesale -- where broker-sourced loans are table funded -- accounted for 28% of production. The 30 or so table funders reporting to NMN and the Quarterly Data Report originated roughly $50 billion in mortgages through loan brokers. All lenders -- using retail, wholesale and correspondent means -- funded $300 billion in product during 4Q, according to preliminary figures. Retail and correspondent lending accounted for the balance of production. Several of the nation's largest lenders have exited the wholesale channel in the past year and mortgage insurance companies have tightened their guidelines on broker-sourced loans.