Loan Brokers Market Scope
Loan Brokers, also known as mortgage brokers are entities that serve as an intermediary between loan providers and the individuals seeking it. They interact with borrowers and lenders to provide the best loans based on financial objectives. Mortgage brokering consists of industrial activity. High demand for loan brokers is attributed to increased activity from investors and first-time home buyers. Moreover, due to competitive interest rates, there is a rise in scrutinization of the mortgage documents to prevent failed credits. This process requires efficient loan brokers, therefore propels the market for loan brokers. Customers’ increasing disposable income is contributing highly to the lucrative market growth.
Attributes | Details |
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Study Period | 2017-2027 |
Base Year | 2021 |
Unit | Value (USD Million) |
Key Companies Profiled | Ally Financial Inc. (United States), Flagstar Bank (United States), Bank of America Corporation (United States), Wells Fargo (United States), Caliber Home Loans Inc. (United States), Interactive Brokers LLC (United States), JPMorgan Chase & Co. (United States), LoanDepot.com, LLC (United States), LaGray Finance (United States) and Macquarie Group Limited (Australia) |
CAGR | % |
Global loan brokers are a fragmented market owing to the occurrence of various players. With increasing housing prices, the demand for loan mortgages rises. Major initiatives such as loan outreach programs, Sustainable Livelihood Initiatives, and Private Finance Initiatives by key banks promote market progress. In order to maintain market share, top leading firms involved in providing loan brokerage form alliances and partnerships with profitable organizations. Research Analyst at AMA estimates that United States Players will contribute to the maximum growth of Global Loan Brokers market throughout the predicted period.
Ally Financial Inc. (United States), Flagstar Bank (United States), Bank of America Corporation (United States), Wells Fargo (United States), Caliber Home Loans Inc. (United States), Interactive Brokers LLC (United States), JPMorgan Chase & Co. (United States), LoanDepot.com, LLC (United States), LaGray Finance (United States) and Macquarie Group Limited (Australia) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research are Rocket Mortgage, LLC (United States), Moneypark (Switzerland), LendingTree, LLC (United States), PennyMac Loan Services LLC (United States), Rocket Mortgage LLC (United States), The PNC Financial Services Group Inc. (United States) and Hypomo (UK).
About Approach
The research aims to propose a patent-based approach in searching for potential technology partners as a supporting tool for enabling open innovation. The study also proposes a systematic searching process of technology partners as a preliminary step to select the emerging and key players that are involved in implementing market estimations. While patent analysis is employed to overcome the aforementioned data- and process-related limitations, as expenses occurred in that technology allows us to estimate the market size by evolving segments as target market from the total available market.
Segmentation Overview
The study have segmented the market of Global Loan Brokers market by Type , by Application (Home Loans, Vehicle Loans, Government Loans, Commercial & Industrial Loans and Others) and Region with country level break-up.
On the basis of geography, the market of Loan Brokers has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico).
region held largest market share in the year 2021.
Market Leaders and their expansionary development strategies
On 1st December 2022, New York Community Bancorp Inc. acquired Flagstar Bancorp, Inc. thereby forming the largest regional banking franchise. The combined organization offers improved services such as multi-family lending, warehouse lending, residential mortgage origination, and serving, along with other diverse revenue and earnings streams.
On 4th October 2022, Bank of America doubled deposits into minority depository institutions (MDIs) to facilitate lending, neighborhood revitalization, housing, and other banking services in low- to moderate-income and minority communities. The program adds an additional USD 100 million in deposits on MDIs. This move expanded their lending capacity while leveraging investments made by the company and other institutions across the United States.
In loan broking, mortgage lenders ought to follow rules put forth by the federal government. Truth in Lending Act (TILA) and Regulation Z protect the relationship between consumers and lenders. Another regulation is the Real Estate Settlement Procedures Act (RESPA) which ensures transparent settlement cost disclosures that concerns home buying.
Influencing Trend:
Introduction of Remote Sales and Paperless Advice in Loan Brokers Market and Increased Digital Collaboration for Efficient Customer Experience
Market Growth Drivers:
Demand for Financial Home Loan Solutions, Especially from Local Providers and Increased Accessibility to Loan Broker Services
Challenges:
Insufficient Risk Valuation Capabilities and Unmet Demand for Loans and the Rapid Digitalization Process
Restraints:
High Service Concession Charged by the Loan Brokers
Opportunities:
Participation of Emerging Local Markets in Global Loan Broking and Collaboration of Traditional Banks and Fintechs Create Opportunities for the Loan Brokers Market
Key Target Audience
Potential Home Buyers, Loan Seekers, Regulatory Bodies, Potential Investors, Research and Development Institutes and Others