The Future of the Mortgage Market – Part 6

If the mortgage broker industry returns to times of low regulation then fraud might become rampant again.

The Future for Mortgage Brokers

Although the credit crunch has been difficult for many people to bear, it has uncovered and help correct problems in the property market and the mortgage market. The mortgage broker profession has taken a hit but it is not down and out. Not only has the number of practicing brokers declined but the reputation of the profession hasn’t been done any favours by the recession.

However the future for mortgage brokers doesn’t look bleak. Many are still practicing and the large banks and financial institutions have been blamed for most of the damage caused by the credit crunch. The reputation of the profession has also weathered the storm created by the few dishonest brokers who have subsequently been expelled by the FSA in the UK and other law enforcement bodies throughout the world.

Some brokers have remained in business by diversifying into other areas. The extra revenue streams created have helped brokers survive the worst of the GFC. It is this kind of resourceful and dedicated mortgage broker that the profession needs to stay in business. When times are tough they do not simply jump ship, but instead remain committed to helping their clients.

There is no doubt that industry regulation will increase as part of the fallout of the credit crunch. The USA is strengthening its regulation on a State government level. Australia is also bringing in mortgage broker regulation to help repair the image of the profession. Regulation in the UK was already stringent before the credit crunch, however the FSA will no doubt look to tighten the loopholes that clever minded criminals have previously exploited.

Hopefully, once house prices stabilise, lenders will release more products that can help first time buyers and home owners with little equity. This will result in their being a wider range of products available to mortgage brokers to offer their clients, and will in turn help brokers conduct more business.

There is a lot of ground to cover before mortgage brokers once again become profitable but ground is already starting to be covered. The profession is still alive and the property market should bounce back, as it always does. It has bounced back before, and it should do again. Brokers who have stayed open should once again make good money once the property market regains its strength. Although it could be a long time before a full boom occurs, the future looks bright for mortgage brokers.

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