Industry Analysis & Industry Trends
A renewed focus
The rebounding economy and home sales will primarily drive the industry's recovery, but it will also benefit from revised ethical business models that focus on transparent lending standards. This particular strategy will enable the industry to compete more effectively with banks, clean its tarnished reputation and adhere to new regulations. Coupled with increased government regulation, this method will support modest revenue growth. However, revenue will remain far below the industry's peaks prior to the recession... purchase to read more
Industry Report - Starting a New Business Chapter
Historically, the industry's barriers to entry have been low, mainly because of the low level of capital that is required to start up operations; however, it is much more difficult to have success in today's economic environment. Most loan brokers are relatively small in size, with the majority employing one to five people. Brokers require equipment for the job, including a computer, phone, basic office supplies and, in cases where they make client visits, a motor vehicle.
State licensing requirements are another barrier to entry. Historically, these requirements have been low, but they are on an upward trend due to the predatory lending practices of some brokers during the subprime crisis... purchase to read more