Mortgage Brokers are in for a rough ride ahead. They are now getting laid-off en masse, it will only get worse in coming year. There is now legislation via “The Homeownership Preservation and Protection Act” that will force regulation on the industry. One provision will create a fiduciary relationship to the borrower, in other words the Broker must act in the borrowers best interests. No more steering borrowers to high interest loans? YSP going away?

So not only is their volume dropping, their profitabilty on a given loan will be tanking. Time to exit the industry if I were a Mortgage broker.