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Mortgage Broker Research Report Released (11/06)

Boxwood and Scotsman Guide have published primary research on broker intermediaries in the small-balance market. The report, “Navigating the Wholesale Channel: 2006 Small-Balance Commercial Mortgage Brokers Survey” sheds new light on the competitive wholesale channel and the brokers that originate the lion’s share of loans in the space.

Small-balance market research specialists, Boxwood Means, Inc., partnered with Scotsman Guide in this ground-breaking research report that is based on a survey of 260 commercial and residential brokers conducted this past summer. The report uncovers for the first time how mortgage brokers are faring in this $134 billion lending space, the performance of residential brokers to date in migrating over to commercial deals and the important features and products that mortgage brokers seek from lenders.

Some general highlights of the report include:

             
  • Residential brokers are successfully crossing over into the small-balance commercial arena as a result of the downdraft in the residential housing market. The wholesale channel is now composed of a larger and much more diverse population of loan brokers, with differing levels of sophistication, as well as needs and wants from lenders.
  • Brokers have difficulty finding lenders that satisfy their customer’s financing needs . The challenging attributes of the small commercial property inventory are a major reason that brokers work with so many lenders.
  • Optimism reigns in the wholesale channel , and residential and commercial brokers report that their deal volume has increased this year versus last. But brokers acknowledge that competition in the space is increasing.

Additional background material and options for purchasing the report are available on the Scotsman Guide web site, http://www.scotsmanguide.com. A complementary and separate research report on commercial lenders of small-balance mortgages is scheduled to be available to the public later this month.