“There’s not enough volume to feed everybody,” said Hale. “Competition is through the roof for purchase volume.”
As much as it might seem like layoffs are the norm, it isn’t. At least among some of the smaller industry players.
“Mortgage brokers tend to be small,” said Bill Corbet, managing director of Englewood, Colo.-based BlackFin-Group, a consulting firm. “They’re usually composed of a couple of brokers and maybe a couple of operations people. They tend to be nimbler.
“The folks who maintained a balanced referral base, they’re still doing OK. The folks who lived off the refi biz, they’re learning how to do their jobs all over again,” the former banking executive added.
Hale agrees, saying the typical, small mortgage broker doesn’t “have regional managers and divisional managers and corporate folks and accounting and human resources departments and technology departments and all those things. They don’t have fixed overhead.”
Corey Vandenberg, a Lafayette, Ind.-based mortgage loan officer, and Gerald Bliss, who owns a mortgage brokerage in Tampa, Fla., confirm much of what Hale and Corbet said.
Prices Drive Purchase Hike
“So, it’s an interesting thing,” Vandenberg said. “It’s a banner year in purchases. Last year, it was a banner year in refis. It’s like a seesaw.
“Purchases are going up, and it’s not like it’s because there’s a million homes out there for sale. It’s because prices keep going up. Homes that were once $200,000 are going for $300,000,” he added.
Vandenberg writes fewer mortgages than he did last year but, he notes, “the ones I write are for more money.”
He credits his success to the many relationships he built up as a local banker for 17 years in and around Lafayette.
Today, he works remotely for Lake State Mortgage, which is four hours away in Grand Rapids, Mich., and writes mortgages in nine states, including Florida, Georgia, Kansas, Michigan, Kentucky, Texas, Ohio, Illinois and his home state.
“Florida and Texas are extremely hot markets but they’re all hot markets,” he said. “I don’t have a bad market.”