North America Mortgage/Loan Brokers Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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

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 Market Competitor Analysis

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.

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• The market estimate (ME) sheet in Excel format
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