A recent study by Polygon Research, supported by Willow Canyon Advisors and United Wholesale Mortgage (UWM), reveals that consumers save an average of $10,662 over the life of a loan when working with independent mortgage brokers compared to nonbank retail lenders. The research, based on 2023 Home Mortgage Disclosure Act (HMDA) data, highlights that the wholesale mortgage channel offers better value, including lower upfront costs and interest rates.
The study also underscores the crucial role mortgage brokers play in promoting homeownership among minorities and veterans. For VA loans, borrowers saved an average of $13,432 when using a mortgage broker. Additionally, the wholesale channel demonstrated higher approval rates and a greater percentage of loans originated to minority borrowers, emphasizing its effectiveness in serving underserved communities. The findings confirm the competitive advantage of mortgage brokers in offering cost savings and personalized services, contributing to the growing popularity of the wholesale mortgage channel.
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