Thought we’d share an interesting trend in the mortgage industry favoring smaller lenders…
Rising mortgage rates and tighter underwriting standards are prompting some borrowers to seek smaller lenders for a mortgage.
Smaller banks and non-bank lenders’ share of the mortgage market is increasing, rising to 60 percent in the third quarter compared to 39 percent in 2009, according to data from Inside Mortgage Finance.
Meanwhile, larger lenders have gradually pulled back on their lending: Only five of the top 20 single-family mortgage originators in 2006 remain active in today’s market, according to Fannie Mae.
“If you’re buying a house, our advice is to find a local lender that’s reputable,” Eric Egenhoefer, president of Waterstone Mortgage, a subsidiary of Milwaukee-based WaterStone Bank, told CNBC. “An independent company in general is more nimble, can get to a closing faster, and provides better service.”
….read the full story here!