Local Banks Regain Mortgage Business

Wall Street Journal (06/05/08) P. B1; Hagerty, James R.
Wholesale Access predicts a drop in the number of mortgage brokers to 30,000 this year from 53,000 at the start of 2007. As mortgage brokers exit the industry, more community banks are taking their business. Hingham Institution for Savings in Boston, for instance, saw its mortgage volume jump 30 percent to $24 million between January and April at a time when Inside Mortgage Finance says first-quarter mortgage originations plunged 29 percent to $480 billion. Hingham has experienced a boost in business despite the fact that it does not rely on software to approve borrowers; instead, the company relies on salaried loan originators and a nine-member executive committee tasked with reviewing each application. Many consumers see benefits from dealing with local lenders, as it is easier to contact someone if they have questions or problems. Many community banks are acting as mortgage brokers, especially those unable to retain loans on their books; more than 2,100 community banks, for instance, are serving as brokers for loans written by Ocala, Fla.-based Taylor, Bean & Whitaker Mortgage Corp.