Mortgage Brokers Suffering Due To Housing Slump And Credit Crunch
Posted: Thursday, May 8th, 2008 at 1:17 pm
A recent report has highlighted how mortgage brokers and correspondents are suffering huge problems as a result of the ongoing housing slump and global credit crunch, with many seeing levels of business plummet as a result of these problems.
Charles J. DiPino, co-owner of Universal Trust Mortgage in Columbia, recently stated: “Each week it’s harder. Mortgage brokers are facing an extreme uphill battle.” With fewer home sales, fewer mortgage products available from lenders, and far tighter credit conditions in place, lenders, consumers, brokers, and many other industry groups are suffering.
Speaking of mortgage brokers and correspondents one industry official stated: “Both those businesses have fallen off dramatically. In past downturns in the mortgage market, lenders have been quick to close down their own branches, which tend to be more expensive, and shift more business to mortgage brokers.”
Matt Zaborsky, president of NORMortgage in Rockville, added: “Not only are the transactions fewer, but the loan amounts are smaller because property values are dropping. So it kind of becomes a double whammy.”
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