Interesting reading in the National Mortgage News subscription site this morning.
A National Mortgage News report, citing remarks of Tom LaMalfa, a partner with research and consulting firm Wholesale Access, says 18,000 mortgage brokerage firms will shut down by mid-2008 and 125,000 mortgage representatives will lose their jobs.
LaMalfa believes that the "conforming" purchase money mortgage business is the only place of refuge for brokers, warning that "if someone doesn't want to operate in the agency space, there's no market for their services."
He made the comments to the Illinois Association of Mortgage Brokers earlier in the month.
Those are pretty sobering thoughts in that not only is subprime dead (we've known that), but that the refi business is also on the rocks.
LaMalfa, by the way, blames Wall Street for the mortgage broker woes, but the NMS story didn't elaborate.