Big banks crush mortgage brokers

February 12, 2009 | By Jim Kim

Back in the day, mortgage brokerage operations were hot--a good way for people with the gift of gab to make a great living. It wasn't that hard to make a six figure salary, even more if you could really gab. Mortgage broker became synonymous with fast money, if not a bit sleazy. But the credit crisis is changing all that.

JPMorgan Chase will no longer make loans arranged by these middlemen, and Citi has announced that it will drastically scale back on the amount of business it does with these brokers, reports CNNMoney.com. A few years ago, brokers accounted for about 80 percent of the mortgage business. Some think that it is probably under 70 percent and will head much lower.

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