A general mortgage market shift away from third-party originations has significantly boosted so-called retail activity in the mortgage market. According to numbers compiled by Inside Mortgage Finance, the retail share of total mortgage originations climbed to 52 percent in the first quarter of 2008. This was the highest retail lending share ever recorded by Inside Mortgage Finance and compares to a 39 percent share just a year earlier.
Not surprisingly, the jump in retail mortgage lending was prompted by a big drop in both broker and correspondent lending in early 2008. On a year-over-year basis, originations through mortgage brokers fell from 29 to 22 percent while correspondent activity tumbled from 32 to 27 percent.
