ScholarLens Back to search
2004•RePEc: Research Papers in EconomicsRequires access

MORTGAGE BROKERS AND THE SUBPRIME MORTGAGE MARKET

Gregory Elliehausen

Open publisher page 2 citations

Abstract

A mortgage broker is an intermediary that brings a borrower and a creditor together to obtain a mortgage loan. The broker takes the application, performs a financial and credit evaluation, produces documents, and closes the loan. The creditor underwrites, funds, and may service the loan. Mortgage brokers play a major role in the mortgage market. In 2003, about 44,000 mortgage brokerage firms originated about 65% of all mortgages (Schneider 2003). That mortgage brokers originate over half of mortgages suggests that mortgage brokers might perform a useful function. Descriptive literature on the industry indicates that mortgage brokers may provide benefits for both borrowers and creditors.

About this research paper

What this paper is about

A mortgage broker is an intermediary that brings a borrower and a creditor together to obtain a mortgage loan. The broker takes the application, performs a financial and credit evaluation, produces documents, and closes the loan. The creditor underwrites, funds, and may service the loan. Mortgage brokers play a major role in the mortgage market. In 2003, about 44,000 mortgage brokerage firms originated about 65% of all mortgages (Schneider 2003). That mortgage brokers originate over half of mortgages suggests that mortgage brokers might perform a useful function. Descriptive literature on the industry indicates that mortgage brokers may provide benefits for both borrowers and creditors.

Why it matters

OpenAlex reports 2 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

A mortgage broker is an intermediary that brings a borrower and a creditor together to obtain a mortgage loan. The broker takes the application, performs a financial and credit evaluation, produces documents, and closes the loan. The creditor underwrites, funds, and may service the loan. Mortgage brokers play a major role in the mortgage market. In 2003, about 44,000 mortgage brokerage firms originated about 65% of all mortgages (Schneider 2003). That mortgage brokers originate over half of mortgages suggests that mortgage brokers might perform a useful function. Descriptive literature on the industry indicates that mortgage brokers may provide benefits for both borrowers and creditors.

Key concepts: Mortgage insurance, Collateralized mortgage obligation, Shared appreciation mortgage, Mortgage underwriting, Creditor, Business, Secondary mortgage market, Loan-to-value ratio

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
MORTGAGE BROKERS AND THE SUBPRIME MORTGAGE MARKET — Research Paper | ScholarLens