Residential mortgage brokers have begun to shift their business from prime to subprime, according to one executive speaking Nov. 6 at the National Home Equity Mortgage Association's Southeastern Conference in Miami."Brokers shifted from a high percentage of conforming to nonconforming and they did it virtually overnight," said Steve Alonso, chairman and CEO of Oak Street Bancorp in Carmel, Ind. Oak Street does more than $2 billion in annual originations and does business with brokers in 28 states. Broker subprime business has been up at Oak Street for the past three months but is now showing some signs of leveling off, Mr. Alonso said. Many industry watchers expect the subprime business to continue to strengthen if rates continue to rise.
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