Market shifts to retail originations
Mortgage broker productions dips
According to Rob Chrisman’s Daily Mortgage News & Commentary, the industry is experiencing a dramatic shift toward retail originations. He even cited data that shows mortgage brokers' share of the market falling to 9.7% in the second quarter of 2013. Chrisman elaborated on the trend:
Per the study the retail share reached an all-time high of 64.6% in 2Q, with correspondent coming in at 25.7%, one of the lowest shares in several years. The surge in retail production appears largely tied to ongoing strength in refinance activity. But lenders that are turning their attention to the purchase-mortgage market should consider that correspondents (34.8%) and brokers (22.0%) had higher concentrations of purchase loans than retail producers (19.3%) during the second quarter.