“From a functional level, you’ve seen some investors remove themselves from the business so you have less outlets to send loans to and rates that are higher amongst the investors that are left,” he explained of the current market.
Beyond this, license renewals for mortgage brokers have been falling.
“You’re seeing a lot of people remove themselves from the market and find other careers or avenues in order to make some money,” Banosian said.
However, he noted, “I think the ones that are remaining in the business and remaining focused on being a solution for their clients and partners are going to, in the short term, face some challenges but, in the long run, reap the rewards of gaining market share because there’s a lot of business to be done and less people trying to do it.”
Banosian’s advice on toughing out the market is to be solution-oriented rather than problem-oriented. “As a mortgage broker you always have to look at the market you’re in and identify what the obstacles and challenges are that your clients and partners are facing and then be the solution to that,” he explained.