We Are Not Alone: Loan Originators Triple Since 2001

by Alex Stenback on April 14, 2005

Lotsofpups_2A tip from a colleague pointed us to this tidbit of information from the Minnesota Department of Commerce, which confirms the fact that residential mortgage banking has (unfortunately) embraced the "puppy-mill" business model in recent years:

"As of 3/31/05 there are 3,395 licensed "residential originators," who may have several individual loan officers working at their firms, no way to tell how many. Banks are exempt so the Wells Fargo’s and US Banks of the world aren’t in these numbers.

In 2001, there were 1,103 state-wide."

These numbers are no doubt similar on a national level, and rising rates will certainly cause them contract, but if you have ever wondered why it seems like EVERYONE is in the mortgage business, look no further.  Talk about an industry that needs more regulation and training.

Source:
Robin Brown, Division of Financial Examinations
Minnesota Department of Commerce.

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