NAMB: Prime, Fixed-Rate Loans Gain Popularity

The residential mortgage market may be returning to more traditional products this year, according to a survey by the National Association of Mortgage Brokers and Wholesale Access.More than 60% of all loans originated by brokers in January involved prime borrowers with FICO scores of 650 or greater, according to the NAMB. Moreover, fixed-rate mortgages are gaining in popularity, representing nearly 54% of new loans in January compared with less than half in 2006. "This is a particularly timely reminder that, even with all the attention that nonprime loans receive in the media, most homebuyers have the proper credit for more traditional loan products," said Harry Dinham, president of the trade association. "The data also point out that brokers are the most popular originators in the market, accounting for more than 60% of all mortgages today." The survey, covering more than 200 brokers, was conducted by Wholesale Access. The NAMB can be found online at http://www.namb.org.