NAMB: Brokers Closing Fewer B&C Loans

The National Association of Mortgage Brokers has released new trend data showing that mortgage brokers continue to close fewer nontraditional or subprime loans than in 2006.The survey of more than 200 brokers found that prime loans fell from a 61% share of the market in March to roughly 56% in April, but that they were still by far the most widely used type of mortgage. In April, only 11% of all loans were subprime, compared with 13% in all of 2006, the NAMB reported. "The shift in the market toward more traditional loan products is yet another reason we have cautioned Congress not to overreact to existing concerns and allow the market to adjust," said NAMB president George Hanzimanolis. The association said researchers expect monthly data to fluctuate throughout the year. "There will be some volatility, but as the year progresses, the trend will be toward lower-risk loans," said David Olson of Wholesale Access Mortgage Research and Consulting Inc., which conducts the continuing survey for the NAMB. "New legislation will make it more difficult to offer higher-risk loans." The association can be found online at http://www.namb.org.