1. The loan broker industry was hit hard during the historic United States housing market crash. Since then, the loan broker industry has been working on recovery and restoring its reputation. The industry has been experiencing positive growth and is expected to continue to perform well in the coming years.
2. Loan brokers work as a go-between for clients and financial institutions, referred to as lenders, to help their clients find the right loan options for their needs. Loan broker businesses can work with businesses to help them obtain business loans or with individuals to help them obtain mortgage loans. Loan brokers find bank or direct lenders that will make specific loans that the individual or corporation is seeking. Loan brokers usually receive a commission as a percentage of the loan amount.
3. Loan broker businesses have experienced fierce competition from commercial banks in past years.
4. IBISWorld, a leading industry and marketing research group, estimates that the loan broker industry generates an annual revenue of about $24 billion.
5. Mortgage brokers have become more regulated in the United States since the historic housing market crash. Regulation depends on the jurisdiction, so prospective business owners are advised to look into any laws, regulations, and license requirements for their area prior to investing in a loan broker business opportunity.
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