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It is a tough time to be a mortgage broker. Whether you service mortgages in Mendon, MA or mortgages in Bellingham, MA, it is a tough time to be in the business. Mortgage brokers are leaving the business in droves as they receive the backlash from lenders who blame them for the meltdown in subprime mortgages. What used to be a profitable and lucrative business now is a nightmare. The United States had 53,000 brokerages in 2008 today there are fewer than 25,000. They are leaving the field in record number as they have fewer products to sell and the standards for borrowers continues to tighten. Brokers don’t actually lend money, but the do match homebuyers with lenders in almost 60% of all home loans. Brokers work with a dozen of more banks and lenders to find the perfect match receiving earnings of 1% to 3% from the lender, borrower or both. During the great real estate boom, their ranks swelled considerable. In 1987 there were only 7,000 mortgage brokerages in the country that growing considerable With today’s housing slump and overwhelming number of home loans in default they have lost their knish in the market. They once were able to offer unconventional loans like interest only and no-down payments, but these are no longer available. Lenders today demand higher incomes and credit scores before approving any loan, including conventional. Half the applicants don’t results in loans; the work is the same for mortgage brokers but no revenue results from these loans. Unfortunately for borrowers, brokers earn higher commissions with higher interest rate loans. As a borrower, do some homework and know what a competitive interest rate is. It is tough times for mortgage brokers, lenders and borrowers, whether you need mortgages in Mendon, MA or mortgages in Bellingham, MA, or anywhere in the country. Charles River Bank (http://www.charlesriverbank.com) is a mortgages Mendon MA. For more info visit charlesriverbank.com
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