North America Mortgage/Loan Brokers Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 5.00 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
North America Mortgage/Loan Brokers Market Analysis
North America Mortgage/Loan Brokers Market has generated a revenue of USD 48 Billion in the current year and is poised to achieve a CAGR of 5% for the forecast period.
A loan/mortgage broker is a specialist who serves as a point of contact between lenders who authorize loans and companies looking to borrow money. Brokers search for the finest financial rates and terms whether their customer wants to fund a loan or launch a new business. They bargain with lenders to secure loan approval or look into other options. A bank loan officer offers mortgage rates and programs from just one company. In contrast, a mortgage broker works on behalf of a borrower to locate the best lending programs and/or lowest rates offered by several lenders.
The COVID-19 pandemic's effects on the financial services industry, personal wealth, and debt levels are getting worse. Mortgage debt is the biggest source of debt for individual homeowners, and it has the biggest impact on their finances and capacity to maintain their standard of living in the event of pay reductions or wage loss. Because mortgages are frequently the largest asset in lenders' retail banking portfolios, changes in mortgage originations, repayment plans, and default rates will considerably impact the lenders' profitability and liquidity.
The primary activity of the loan brokers sector is the facilitation of loans between lenders and borrowers. Brokers provide services to corporations and consumers, with most of their business being in the mortgage brokering sector. Historically, the sector has expanded alongside the US economy, despite uncertainty during the 2008 housing crisis. In more recent years, rising consumer confidence and attractive lending rates have benefited the loan brokers sector. The housing market's increased activity further indicates rising consumer demand. Over the five years leading up to 2022, the loan brokers market is anticipated to grow as consumer incomes and credit availability both rise. Over the past five years, consumer spending has been boosted by favorable economic conditions and low-interest rates, and demand for mortgages and auto loans has increased as a result of home and car purchases. Demand for loan brokering services is anticipated to expand as household spending on expensive things rises.
North America Mortgage/Loan Brokers Market Trends
This section covers the major market trends shaping the North America Mortgage/Loan Brokers Market according to our research experts:
Increase in Digitization in Lending and Blockchain Technology is driving the market
The COVID-19 pandemic caused a significant increase in sales of about 31%, which led to an increase in revenue generation as a result of a significant shift toward digitalization. Currently, thanks to technological advancements, every domain in the virtual world have grown. Lenders and borrowers were forced by the pandemic to reassess the best ways to run and conduct their businesses.
Blockchain technology has been hailed for a few years as one of the possible solutions. Mortgages will increasingly move online thanks to Blockchain technology, where smart contracts and decentralized ledgers will make mortgage transfers quicker, safer, and more affordable. To increase client financial information accessibility while safeguarding borrowers' credentials, large financial institutions are increasingly working with data aggregators.
RefiNow’s Eligibility Expansion to Drive Mortgage Refinance Volume
The eligibility requirements for borrowers for the RefiNow and RefiPossible programs from Freddie Mac and Fannie Mae have been widened by the Federal Housing Finance Agency (FHFA). Before, applicants for these programs had to have an area median income (AMI) of at least 80%. This cap is increased to 100% by the most recent FHFA notice. By these initiatives, lenders are required to grant borrowers a USD 500 credit if an appraisal is necessary to determine the worth of their home. Paystubs and a year's worth of personal tax returns are required to verify the income of the borrowers.
These schemes, which guarantee a 0.5% reduction in the mortgage interest rate, are anticipated to encourage the refinancing of existing mortgages.
North America Mortgage/Loan Brokers Industry Overview
The analysis covers the major international rivals in the US mortgage/loan broker industry. Since they rely on their connections to the top lenders and real estate agents in the areas they serve, loan brokers are in a fiercely competitive industry. Some of the important market players are shown in the list below.
North America Mortgage/Loan Brokers Market Leaders
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Penny Mac
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Home Point
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Caliber Home Loans
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Fairway Independent
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JP Morgan Chase
*Disclaimer: Major Players sorted in no particular order
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North America Mortgage/Loan Brokers Market News
- In November 2022, To expand the use of eNotes across 250 locations in 49 states, Primary Residential Mortgage Inc. (PRMI) employed the eVault and digital closing platform from Snapdocs.
- In August 2022, Due to the slowdown in home sales caused by rising interest rates, the two biggest mortgage lenders in the US are increasing pressure on their smaller rivals by providing discounts and other incentives. The two biggest mortgage originators in the US, Rocket Mortgage and United Wholesale Mortgage, respectively, are pursuing aggressive strategies at a time when many lenders are leaving the market or going out of business.
North America Mortgage/Loan Brokers Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Insights on Various Regulatory Trends Shaping Mortgage Broker Market
- 4.5 Insights on the impact of technology and innovation in Operation in Mortgage Broker Market
- 4.6 Insights on Performance of Asset Managers
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4.7 Industry Attractiveness - Porters' Five Forces Analysis
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitutes
- 4.7.5 Intensity of Competitive Rivalry
- 4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 Enterprise
- 5.1.1 Large
- 5.1.2 Small
- 5.1.3 Medium- sized
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5.2 Application
- 5.2.1 Home Loans
- 5.2.2 Commercial and Industrial Loans
- 5.2.3 Vehicle Loans
- 5.2.4 Loans to Governments
- 5.2.5 Others
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5.3 End - User
- 5.3.1 Businesses
- 5.3.2 Individuals
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5.4 Geography
- 5.4.1 United States
- 5.4.2 Canada
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration & Overview
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6.2 Company Profiles
- 6.2.1 Penny Mac
- 6.2.2 Home Point
- 6.2.3 Caliber Home Loans
- 6.2.4 Fairway Independent Corporation
- 6.2.5 JP Morgan Chase
- 6.2.6 Royal Bank of Canada
- 6.2.7 Flagstar Bank
- 6.2.8 PNC Bank
- 6.2.9 Ally
- 6.2.10 New American Funding*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
** Subject To AvailablityNorth America Mortgage/Loan Brokers Industry Segmentation
A mortgage broker is a middleman who handles the mortgage loan application procedure on behalf of individuals or companies. In essence, they build connections between mortgage lenders and borrowers without investing any of their own money. The North America Mortgage/Loans Broker Market is segmented by Enterprise (Large, Small, and Medium-sized), by Application (Home Loans, Commercial and Industrial Loans, Vehicle Loans, Loans to Governments, and Others), by End- User (Businesses and Individuals) and by Geography (United States and Canada).
| Enterprise | Large |
| Small | |
| Medium- sized | |
| Application | Home Loans |
| Commercial and Industrial Loans | |
| Vehicle Loans | |
| Loans to Governments | |
| Others | |
| End - User | Businesses |
| Individuals | |
| Geography | United States |
| Canada |
North America Mortgage/Loan Brokers Market Research FAQs
What is the current North America Mortgage/Loan Brokers Market size?
The North America Mortgage/Loan Brokers Market is projected to register a CAGR of 5% during the forecast period (2024-2029)
Who are the key players in North America Mortgage/Loan Brokers Market?
Penny Mac, Home Point, Caliber Home Loans, Fairway Independent and JP Morgan Chase are the major companies operating in the North America Mortgage/Loan Brokers Market.
What years does this North America Mortgage/Loan Brokers Market cover?
The report covers the North America Mortgage/Loan Brokers Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the North America Mortgage/Loan Brokers Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Mortgage/Loan Brokers Industry Report
Statistics for the 2024 North America Mortgage/Loan Brokers market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Mortgage/Loan Brokers analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
