We got some excellent news for the nation's tiny business mortgage brokerage community. FHA recently had announced that they would permit FHA lenders to fund loans originated by mortgage brokers not directly approved by HUD. What this means is all those mortgage brokers who did not have the ability to become FHA approved can now start serve a market argued to be anywhere from 14-15% of the marketplace for new home loans.
The giant query was if major lenders would pick up on the ruling & actually permit historically non-fha-brokers to originate this product. The product is itself complex as compared to conventional products & requires a highly level of discipline & even requires specialized FHA DE's or underwriters. The answer to the query at hand appears to be answered as Flagstar Bank has released comments about the ruling & a recently held conference call with HUD. Brokers ought to expect by December of this year to be able to originate & deliver FHA loans for funding.
In what has been a hard several years for the mortgage broker, & with new legislation that would further weaken the brokers ability to compete, this is a tiny silver lining.
Of coursework the broker has a long way to go. Broker market share was once reported to be as high at 80% of all mortgage originated, that number is now south of 14%. With that drop in market share, plenty of have left the business all together. It is clear, plenty of weren't prepared for the brutal shut-off - there was no slowdown.
Only time will tell if pending legislation & new originations will keep the broker afloat - it wasn't the brokers fault alone that the mortgage market to collapse, but they are the last group related to finance that has not recovered. Banks are now reporting record earnings & the investment banks cannibalized themselves & are paying out record bonuses. Let's hope the tiny businessman mortgage broker again has his chance to show his professionalism & dedication to providing quality mortgage finance.
With over twenty years experience in mortgage lending, a Certified Mortgage Banker Designate (CMB) from the Mortgage Bankers Association of America, & billions in funded loan experience, I can assist you and/or your clients with the most important financial decisions realted to your residential & commercial actual estate. call or e-mail me today.
By: Rashid
The giant query was if major lenders would pick up on the ruling & actually permit historically non-fha-brokers to originate this product. The product is itself complex as compared to conventional products & requires a highly level of discipline & even requires specialized FHA DE's or underwriters. The answer to the query at hand appears to be answered as Flagstar Bank has released comments about the ruling & a recently held conference call with HUD. Brokers ought to expect by December of this year to be able to originate & deliver FHA loans for funding.
In what has been a hard several years for the mortgage broker, & with new legislation that would further weaken the brokers ability to compete, this is a tiny silver lining.
Of coursework the broker has a long way to go. Broker market share was once reported to be as high at 80% of all mortgage originated, that number is now south of 14%. With that drop in market share, plenty of have left the business all together. It is clear, plenty of weren't prepared for the brutal shut-off - there was no slowdown.
Only time will tell if pending legislation & new originations will keep the broker afloat - it wasn't the brokers fault alone that the mortgage market to collapse, but they are the last group related to finance that has not recovered. Banks are now reporting record earnings & the investment banks cannibalized themselves & are paying out record bonuses. Let's hope the tiny businessman mortgage broker again has his chance to show his professionalism & dedication to providing quality mortgage finance.
With over twenty years experience in mortgage lending, a Certified Mortgage Banker Designate (CMB) from the Mortgage Bankers Association of America, & billions in funded loan experience, I can assist you and/or your clients with the most important financial decisions realted to your residential & commercial actual estate. call or e-mail me today.
By: Rashid
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Buy to let mortgage broker