In the aftermath of the subprime mortgage crisis, negative perceptions of brokers were a “big stumbling block” to growing the profession’s market share, according to Harish Tejwani (pictured, top left).
The entrepreneur, who helms ARIVE – a mortgage broker platform provider – said those preconceptions are rapidly changing, with efforts to get the word out about brokers helping no end. “Consumer education is very important,” Tejwani told Mortgage Professional America.
When it comes to tackling negative views of the profession, “that’s where organizations like AIME [the Association of Independent Mortgage Experts] and some other great lenders have created this awareness that brokers are best for consumers,” he said.
Mortgage rates trended down this week, with the 30-year fixed-rate mortgage (FRM) dipping to its lowest level in two years, according to Freddie Mac’s latest Primary Mortgage Market Survey (PMMS).https://t.co/X29SkuulKH
— Mortgage Professional America Magazine (@MPAMagazineUS) September 28, 2024
Highlighting potential savings a crucial strategy for mortgage brokers
Advances on the technology front have also boosted the effectiveness of the space. “The other challenge in the broker world was that there was no seamless software, and that’s where we come in,” Tejwani said. “Brokers were always kind of held back because retail has pretty good software platforms to do loans – and that does not exist in the broker channel. That’s the gap ARIVE is fitting.”
Among others, United Wholesale Mortgage (UWM) is bullish about the future of the broker space. The wholesale lending giant believes brokers’ share of the market will jump to 33% by 2026 – fueled in part by a growing belief, its executive vice president Alex Elezaj told Mortgage Professional America last year, that brokers can help clients save much more than in the retail arena.