Loans originated by mortgage brokers fell 51 percent in the second quarter, according to exclusive production figures compiled by National Mortgage News.
As a result, the mortgage broker-share of loan originations slipped to a record low 10.5 percent (not sure how far records go back).
Mortgage brokers grabbed their largest share of overall loan volume in the fourth quarter of 2007, accounting for just under 30 percent of the pie.
Of course, the poor quality of loans funded during the latest housing boom probably had a lot more to do with the originate-to-distribute model than anything else.
A study released last year found that loans sold on the secondary market quickly after being originated were underwritten more poorly than loans kept on banks’ books, and as a result, defaulted more.
That would explain why banks have opted to keep things in-house for the time being, though more wholesale lending programs seem to be emerging lately.