Broker Share of Originations Falling?

The mortgage brokerage share of loan originations dipped to 58% in 2006, according to a preliminary tabulation by Wholesale Access Mortgage Research and Consulting, Columbia, Md.The small decline in market share from 63% of total loan volume in 2005 "could change" by the time the company releases its final tabulation, depending on the size of firms yet to be counted, the firm's Larry Pearl said at the National Association of Mortgage Brokers convention in Seattle, where the figures were released. But it seems highly unlikely the share could jump back to the 69% benchmark figure that was recorded by the firm as recently as 2004. Wholesale Access founder David Olsen said brokers "still dominate" the market, largely because they "do a better job for less." Brokers "do it cheaper and they do it better," he said. The firm now counts 53,000 brokerage firms, down from 54,000 in 2005 but the same number as in 2004. The count includes 3,500 net branches, or 6.5% of the total. That number has "increased considerably" in the last two years, Mr. Olsen told a convention session, and is likely to continue to grow -- "possibly at a faster rate" -- because government regulations are becoming more restrictive. The company counts a broker as being in business if someone answers to phone or the company does at least one loan a year.