The Rise of The Non-Banks

Since the financial crisis, banks have moved away from residential mortgage lending, citing low margins and increased regulatory scrutiny.

 In turn, non-banks, or mortgage companies that are not subsidiaries of a bank or bank holding companies, began filling the void. With no overhead or legacy costs stemming from the financial crisis, these companies claimed they could originate mortgages at a lower cost to consumers than banks.

In many metro areas, including South Florida, non-banks are now the leading mortgage lenders. The rise of non-banks allows borrowers easier access to mortgages.Hurry! Get your mortgage now!