Over the last decade, mortgage brokers lost 90 percent of their market share and struggled to regain traction. They were seemingly on the brink of extinction but that could be changing.
At least that’s the viewpoint of Mike Eshelman, head of consumer finance for Jornaya, a data-as-a-service platform. Writing in the Scotsman Guide, he says a growing trend of mortgage bankers leaving consumer-direct and retail-based companies to become independent brokers, resulting in a modest growth in market share. Additionally, new technologies built specifically for the mortgage broker community to combat their loss in market share had been developed and launched.
At the turn of the 21st century, Eshelman said, mortgage brokers dominated the industry and were responsible for originating 68 percent of residential mortgage loans in the U.S., according to a 2004 study by Wholesale Access Mortgage Research & Consulting Inc. Business was booming and it was a great time to be an independent mortgage broker. Now they are pushing for a 20 percent share by 2020.
What could drive the revival, Eshelman says, are platforms that provide a fully integrated, point-of-sale customer relationship management software, pricing engine, pipeline management and reporting tool that allow users to manage almost every aspect of their business from a single location. These solutions also provide the fintech experience borrowers have become accustomed to having.