Mortgage & Nonmortgage Loan Brokers

The 9,631 mortgage and nonmortgage loan brokers in the US facilitate loans by connecting borrowers and lenders for a fee. Residential mortgage loans account for 75% of industry sales. Other sources of revenue include brokering and dealing services for debt instruments and loans to businesses.

Competition from Alternative Service Providers

Loan brokers compete with a variety of alternative sources, including direct lenders, online-only disruptors, and (for mortgage loan brokers) real estate companies.

Government Regulation

In the wake of the last recession and housing crisis, increased regulation in the mortgage lending industry has led to higher costs and limitations on fees and pricing.

Jul 22, 2026 - Housing Bill Targets Mortgage Availability, Not Interest Rates

• The recently enacted 21st Century ROAD to Housing Act is expected to affect mortgage lending more by expanding access to credit rather than by lowering borrowing costs. The law encourages community banks to increase mortgage lending, supports financing for affordable housing, and addresses regulatory barriers that have made small-dollar mortgages uneconomical for many lenders. Those changes could improve access to home loans for first-time buyers and borrowers in lower-cost and rural markets. The legislation also aims to increase housing supply by streamlining development and encouraging new construction, which could help moderate home-price growth over time. However, the bill does not directly reduce mortgage interest rates or change conventional underwriting standards. Mortgage rates will continue to be driven primarily by inflation, Federal Reserve policy, and broader financial market conditions, meaning any affordability benefits from the legislation are likely to emerge gradually rather than immediately.
• Homebuyers returned to the housing market for a third straight month in April, but economists say the rebound may already be running out of steam as mortgage rates climb back above 6% and affordability pressures intensify. The National Association of Realtors said pending home sales rose 1.4%, beating Reuters forecasts for a 1.0% gain, with the strongest increases in the Northeast and Midwest. Still, analysts warned the uptick was likely fueled by a brief dip in borrowing costs before rates surged again amid geopolitical tensions tied to the Iran War. Freddie Mac said the average 30-year fixed mortgage rate jumped to 6.46% in early April and has since edged back up to 6.36%. Economists at Pantheon Macroeconomics and Oxford Economics said high rates, scarce starter homes, weak consumer confidence, and rising household costs are expected to keep the housing market sluggish for much of 2026.
• US mortgage debt is at record highs, according to Bankrate, driven by surging home prices and elevated interest rates. The average American mortgage borrower owes $258,214 - up 3.1% from 2024 - while total household debt hit $18.8 trillion in Q4 2025. Mortgages dominate that figure, dwarfing auto loans ($1.67T), student loans ($1.66T), and credit card debt ($1.28T). Millennials carry the heaviest load at $320,027 on average, and 67 cities now see average mortgage balances exceeding $1 million. The Mortgage Bankers Association puts the delinquency rate at 4.26% in Q4 2025, up year-over-year, with Southern states hit hardest. Per the National Association of Realtors, the median home price has climbed from $280,700 in March 2020 to $398,000 as of February 2026, reflecting what's fueling the ongoing debt surge.
• Amid high home prices and rising carrying costs, adjustable-rate mortgages (ARMs) are making a comeback as buyers seek lower payments. ARMs offer cheaper borrowing rates than 30-year fixed mortgages (averaging 5.4% for five- and seven-year ARMs versus 6.1% for fixed loans, per mortgage tech firm Optimal Blue) but carry the risk of higher payments after rates reset in three to ten years. The Mortgage Bankers Association says about 10% of applications in October were for ARMs, the highest amount since 2023. Also, builder surveys show roughly 14% of buyers opted for ARMs, betting on lower rates before resets. Modern ARMs are safer than those in 2004-2005 (which helped trigger the 2008 housing crisis when resets led to widespread foreclosures) thanks to tighter lending standards and caps on rate adjustments. The trend is fueled by affordability pressures and the expectation that the Federal Reserve will further cut interest rates.

Industry size & Structure

The average mortgage or nonmortgage loan broker operates out of a single location, employs about 8 workers, and generates about $1.9 million annually.

• The mortgage and nonmortgage loan brokerage industry consists of about 9,630 firms that employ about 76,000 workers and generate about $18.3 billion annually.
• The industry is concentrated; the top 50 companies account for about 54% of industry revenue.
• C2 Financial Corporation is one of the largest mortgage broker companies in the country.
• According to the Consumer Financial Protection Bureau, mortgage brokers account for more than 15% of origination volume.