One in four mortgage brokers closing shop
By
Adam Smith
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4/07/2011 6:30:00 AM
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8
comments
A slowing mortgage market has seen one in four mortgage broking firms close its doors in the 12 months to March, new research says.
In a new mortgage market report report, MISC Global research has found only 119 broking firms sold even a single mortgage in the March quarter, compared to 161 in the March quarter of last year, a result which sees the fewest active mortgage broking businesses since MISC began gathering mortgage broker and banking data in 2001. The value of all mortgage business done through brokers fell $2.7bn to $11.6bn for the quarter.
MISC has correlated the result to the advent of NCCP licensing and reforms. According to the company's data, ASIC had approved 5,559 individual licenses as of March. In spite of the contracting market, the brokers remaining have seen an 18% increase in lending activity. MISC said this increase came in spite of constrained conditions in the mortgage market. MISC research has indicated the increase in productivity has come on the back of heightened competition among lenders, with banks offering pricing incentives in a play for mortgage market share.
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Latest Comments
Total:
8
comment(s)
Whistleblower on
04 Jul 2011 02:11 PM
What's even more interesting is:
That out of the 5,559 ASIC-ACL licences, a large number have secured an ACL so as to protect their trail incomes from sources that threatened to steal their trails if they didn't have an ACL.
I know MANY who have an ACL, then left the industry.... measure that!
Daniel Son on
04 Jul 2011 02:23 PM
No surpise. If we could earn a dollar doing something else I'm sure most of us would.
not a broker on
04 Jul 2011 05:33 PM
Did I read it right ? One in 4 brokers quitted ! Tell me I am not crazy, or I am, thinking of paying thousands $$ to buy a franchise.
Ozboy on
05 Jul 2011 10:30 AM
not a broker, your crazy!
sidbroker on
05 Jul 2011 11:45 AM
To not a broker, At least you have asked the question, If you go against ozboys advise then you can be re classified as you know what. If you still want to be a broker then why not send me a blank cheque. That would be a good way for my business to make money at your expense.
matto on
05 Jul 2011 04:18 PM
Only 119 broking firms sold a single mortgage in the March quarter?? That is extremely hard to believe. What is their definition of "broking firm"?
1martym1 on
06 Jul 2011 08:55 AM
I think they meant aggregator not brokerage.
petert71 on
07 Jul 2011 12:50 PM
Only 119 groups sold a home loan? Home many brokers/aggregators do they actually beleive there are?