On the money: Recovery in the housing market will favorably influence industry performance

The Loan Brokers industry has faired well over the past five years as consumer confidence levels have risen. Favorable economic conditions and low interest rates have fueled consumer spending over the past five years with purchases of homes and cars increasing demand for mortgages and auto loans. As household spending on big-ticket items increases, demand for loans is also slated to increase. As a result, industry revenue is projected to grow. The next five years are expected to be positive for the Loan Brokers industry as the general economy is expected to grow, albeit at a slower pace. However, the industry is expected to face several headwinds. Over the next five years, interest rates are expected to increase, and, as a result, mortgages will become less attractive to consumers...purchase to read more.

Industry Statistics & Market Size
Revenue
$12bn
Annual Growth 13-18
5.8%
Forecast Growth 18-23
Profit
Employment
50,224
Businesses
11,029
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Household income levels have increased in line with corporate profit and capital markets
  • Big banks have bypassed industry operators, citing their involvement in the subprime crisis
  • Despite improvements in industry performance, profit will fall short of prerecessionary levels
  • Industry Report - Industry Products Chapter

    The bulk of revenue for the Loan Brokers industry is created through the arrangement of loans; industry operators bring borrowers and lenders together and extract a commission or fee for their services. Effectively, loan brokers act as liaisons between the two parties, helping to secure the best products for their clients, while simultaneously streamlining the lending process. While loan brokers are used in the origination of many different products, they generate the majority of their revenue from residential loan transactions.Residential mortgagesIn 2018, fees or commissions from residential loan transactions are anticipated to account for 80.4% of industry revenue. Pro...purchase to read more.

    Additional Insights for the Loan Brokers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Loan Brokers Industry are

  • Must comply with government regulations
  • Having relationships with lenders
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as year conventional mortgage rate and House price index in the Loan Brokers industry impact industry performance..

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    What's in this report

    What is the Loan Brokers Industry?

    This industry is composed of establishments that arrange loans, especially mortgages, by bringing borrowers and lenders together on a commission or fee basis.

    Industry Products
  • Residential mortgages
  • Commercial and industrial mortgages
  • Home equity loans
  • Vehicle loans
  • Loans to governments
  • Brokering and dealing products
  • Industry Activities
  • Brokering residential mortgages
  • Brokering commercial and industrial mortgages
  • Brokering home equity loans
  • Brokering equipment financing arrangements
  • Brokering vehicle loans
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • year conventional mortgage rate
  • House price index
  • External competition for the Loan Brokers industry
  • Housing starts
  • Per capita disposable income

  • Current Performance
  • Consumer confidence
  • Economic climate
  • Housing market
  • Regulation
  • Industry operations
  • Chart: Revenue Growth

  • Industry Outlook
  • Deregulation
  • Limited recovery
  • Industry operations
  • Table: Loan Brokers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Loan Brokers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Consumers

  • Key Selling Industries
  • Commercial Banking
  • Industrial Banks
  • Savings Banks & Thrifts

  • Products & Services
  • Residential mortgages
  • Brokering and dealing products
  • Commercial and industrial mortgages
  • Other
  • Home equity loans
  • Vehicle loans
  • Loans to governments
  • Chart: Loan Brokers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Existing home buyers
  • First-time home buyers
  • Businesses
  • Other consumers
  • Governments
  • Chart: Major Market Segmentation for the Loan Brokers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages and depreciation
  • Marketing costs and rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Loan Brokers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Loan Brokers Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Loan Brokers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Loan Brokers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Housing starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    2-28 Loan
  • A loan that has a fixed rate for a certain period of years until the rate becomes adjustable for the remainder of the loan.
  • Alt-A Loan
  • A category of mortgages that have a risk potential greater than prime but less than subprime.
  • Mortgage Origination
  • The creation of a new mortgage that involves a range of necessary legal papers and placement of the mortgage on the lender's books.
  • Ninja Loan
  • A loan where the borrower can qualify with no income, no job and no assets.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Loan Brokers Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Loan Brokers industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Loan Brokers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Loan Brokers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Loan Brokers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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