As the share of jumbo and subprime mortgages declined, prime loans represented a bigger portion of monthly broker originations, according to a new report.
More than 60 percent of broker-originated loans in January were for prime borrowers, according to a national survey conducted on over 200 brokers in January by Wholesale Access Mortgage Research and Consulting Inc. and announced today by the National Association of Mortgage Brokers. Prime borrowers include borrowers with a FICO score of at least 650.
Fixed-rate mortgages climbed from less than half of broker business a year ago to almost 54 percent in January -- reflecting a trend of converting adjustable-rate mortgage borrowers to fixed rates, the data indicated.
Interest-only and piggy-back products, which both represented more than one-quarter of 2006 broker business, each fell below 10 percent of January originations, NAMB reported.
Brokers originate more than 60 percent of all mortgages today, the report said.
"Brokers react quickly to changes in the market place ... and have moved away from the high-risk subprime mortgages," Wholesale Access's president said in the press release.