Loan Brokers in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: February 2024
NAICS 52231Revenue
$26.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
97,897
Businesses
20,780
Wages
$XX.Xbn
Loan Brokers in the US industry analysis
US loan brokers enjoyed significant revenue growth through much of the five years to 2024 as interest rates hit record lows in the early years and consumer confidence soared. Interest rates have remained artificially low since the 2008 global financial crisis. Low interest rates offered in the period and increased consumer spending spurred demand for mortgage and nonmortgage loan brokerage services, resulting in a surge in revenue of 33.8% in 2020 alone. These interest rates have steadily risen after the pandemic, bringing back a compressed lending environment in the latter half of the period. Loan brokers also continue to contend with educated consumers attracted to the easy lending processes popularized by online lenders. Overall, industry revenue is set to increase at a CAGR of 12.5% to $26.6 billion over the five years to 2024. In 2024, revenue will increase by 2.1% as aggressive interest rate hikes curb mortgage demand.
Trends and Insights
- Rising interest rates are reducing loan originations as consumers and businesses dodge the high cost of borrowing. Stiff competition with online brokerage firms drives demand away from loan brokers, forcing them to make technological advances.
- Residential mortgages are the largest product for loan brokers. Prospective homebuyers use loan brokers to shop for the best interest rates.
- Regions with heavily populated cities have a higher demand for loan brokers. Prospective homebuyers seek out brokers to assist in the homebuying process, necessary in a competitive market.
- Consumers’ need for local knowledge keeps market share concentration low. Loan brokers rely on connections with top realtors and lenders to remain competitive.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 12.5 % over the past five years, to reach an estimated $26.6bn in 2024.
Trends and Insights
Home purchases and renovations soar with more time being spent at home
- Low interest rates and increased disposable income during the pandemic resulted in a booming housing market and a staggering 33.8% jump in revenue in 2020. According to the National Association of Realtors, this accommodating lending market has led first-time homebuyers to account for nearly a third of all homebuyers in 2022.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Demand for loans will slack as interest rates climb higher
- Runaway inflation has forced the Federal Reserve to raise interest rates aggressively in the years since the pandemic. The Fed has paused rising interest rates. It isn't certain whether the Fed will begin to lower or resume hiking rates, but the current high rates will have lingering effects for the next few years.
Biggest companies in the Loan Brokers in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Lendingtree Inc. | 1,018.5 | -7.9 | -0.8 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Residential mortgages for single family residences, Commercial and industrial mortgages and Residential mortgages for multifamily residences . Residential mortgages for single family residences is the largest segment of the Loan Brokers in the US.
Trends and Insights
Residential loan originations tempered by higher interest rates
- A residential mortgage is a secured loan taken out by households to finance the purchase or renovation of a home. Prospective homebuyers use loan brokers to access various interest rates and localized knowledge.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Credit Unions in the US
- Industrial Banks in the US
Complementors
- Savings Banks & Thrifts in the US
- Credit Card Issuing in the US
- Auto Leasing, Loans & Sales Financing in the US
International industries
- Global Insurance Brokers & Agencies
- Real Estate Sales & Brokerage in Canada
- Mortgage Brokers in Australia
- Financial Asset Broking Services in New Zealand
Table of Contents
About this industry
Industry definition
This industry comprises brokers who arrange loans, especially mortgages, by bringing borrowers and lenders together on a commission or fee basis. Since loan brokers generate revenue through commission or on a fee basis, the increase in loan originations contributed to revenue generation and profit.
What's included in this industry?
Brokering residential mortgagesBrokering commercial and industrial mortgagesBrokering home equity loansBrokering equipment financing arrangementsBrokering vehicle loansCompanies
Lendingtree Inc.Purchase this report to view all 1 major companies in this industry.
Related Terms
ALT-A LOAN2-28 LOANNINJA LOANMORTGAGE ORIGINATIONIndustry Code
NAICS 52231 - Loan Brokers in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Rising interest rates are reducing loan originations as consumers and businesses dodge the high cost of borrowing. Stiff competition with online brokerage firms drives demand...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Residential mortgages are the largest product for loan brokers. Prospective homebuyers use loan brokers to shop for the best interest rates.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Regions with heavily populated cities have a higher demand for loan brokers. Prospective homebuyers seek out brokers to assist in the homebuying process, necessary in a compe...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Consumers’ need for local knowledge keeps market share concentration low. Loan brokers rely on connections with top realtors and lenders to remain competitive.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Loan brokers gain success through partnering with lenders and real estate vendors. This partnership helps them offer competitive prices and quality service. Brokers experienc...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Lendingtree Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Lendingtree Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Buyers select loan brokers based on local knowledge and product offerings. Price is a key consideration. Experience and quality of service are also deciding factors.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Knowledgeable employees carry a high price tag, putting pressure on brokers to retain their employees. Technically skilled employees can assist in revenue generation as consu...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Loan Brokers in the US industry in United States in 2024?
The market size of the Loan Brokers in the US industry in United States is $26.6bn in 2024.
How many businesses are there in the Loan Brokers in the US industry in 2024?
There are 20,780 businesses in the Loan Brokers in the US industry in United States, which has grown at a CAGR of 10.3 % between 2019 and 2024.
Has the Loan Brokers in the US industry in United States grown or declined over the past 5 years?
The market size of the Loan Brokers in the US industry in United States has been growing at a CAGR of 12.5 % between 2019 and 2024.
What is the forecast growth of the Loan Brokers in the US industry in United States over the next 5 years?
Over the next five years, the Loan Brokers in the US industry in United States is expected to grow.
What are the biggest companies in the Loan Brokers in the US market in United States?
The biggest company operating in the Loan Brokers market in United States is Lendingtree Inc.
What does the Loan Brokers in the US in United States include?
Brokering residential mortgages and Brokering commercial and industrial mortgages are part of the Loan Brokers in the US industry.
Which companies have the highest market share in the Loan Brokers in the US in United States?
The company holding the most market share in United States is Lendingtree Inc..
How competitive is the Loan Brokers in the US industry in United States?
The level of competition is high and increasing in the Loan Brokers in the US industry in United States.
