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Daily Real Estate News | June 1, 2009 |
Do Loan Brokerages Need a New Business Model?
Although the economic downturn and mortgage crisis have reduced loan brokers' share of the business, experts believe they have a future—but they may have to alter their business models.
Fannie Mae and Freddie Mac's Home Valuation Code of Conduct, possible reform of the Real Estate Settlement Procedures Act, a move to prohibit yield-spread premiums, and a decrease in available warehouse credit all pose challenges; but experts say brokers able to arrange FHA and VA loans will survive.
In response, brokers increasingly are considering mergers with retail mortgage chains, joining net branch outfits, or forming other joint ventures, and some brokers are taking steps to become mortgage bankers.
Source: American Banker, Brian Finkelstein (06/01/09)
© Copyright 2009 Information Inc.
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