1.1 Definition and presentation

Real estate loan brokerage is an intermediary activity through which a broker brings borrowers and mortgage lenders together, without using their own funds to originate the loans. Therefore, the role of brokers is crucial in such transactions, as they are able to connect borrowers with lenders, seeking the best solution in terms of both the borrower's financial situation and interest rate requirements. The main benefits include saving time and effort during the mortgage application process, as well as potentially saving a lot of money over the life of the loan.

The broker's skills are often called upon when an individual in need of a mortgage is unable to get one from a bank. In this case, the mortgage broker will be tasked with studying a particular file, and leveraging their skills to push for a positive loan. The mortgage broker is also a very useful figure for companies, as he has the possibility to take advantage of more advantageous conditions than the classic options offered by banks.

The global mortgage brokerage market was valued at $5.52 billion in 2019, and is expected to reach $22.30 billion in 2027, growing at a CAGR of 19.1%. The market includes all mortgage transactions carried out by brokers.

In Italy, a growing number of financial institutions are providing mortgage brokerage services. Since 2012, the main banking groups have reviewed their business models in order to introduce this activity within the range of products offered to customers. In particular, they have found it convenient to offer customers a full mortgage brokerage service, due to the list of advantages it brings both for the bank and for the counterparties (the lender and the borrower). For example, by providing this service, the financial institution no longer releases liquidity to the borrower, so it no longer bears the counterparty risk. Moreover, the financial institution charges a commission for this intermediation activity, which represents a positive component of its total profitability.

Therefore, even though Italy can be considered a bank-centric country, an increasing trend of intermediaries is considering expanding the activity of mortgage brokerage, which has proven to be highly profitable and cost-effective.

The main financial groups offering mortgage brokerage services in Italy are Kìron Partner, Euroansa, Auxilia Finance and Facile.it.

1.2 The national mortgage brokerage market

Market size calculation:

The findings captured show strong volume growth in H* **** compared to H* ****, recording a percentage change of +**% in just six months. This change is mainly driven by mediations to individuals (***). Mediators brokered €* *** *** *** in ****.

Mortgage brokers in Italy represent **% of the overall mortgage market. This figure will then be ...

1.3 2020: a year of turmoil for mortgage brokerage

The year **** was a very fruitful year for the mortgage brokerage market. Indeed, in just one year (***), the number of employees in brokerage companies increased significantly:

Evolution employés dans le courtage immobilier Italie, ****-****, en nombre et en % Source: ****

The OAM estimates that in this year **** people took the exam ...

2022 : la croissance devient plus incertaine

**** a tout de même été une bonne année pour le secteur, selon un rapport de la Commission européenne.**MAXa enregistré une croissance de la valeur intermédiée de**,*% par rapport à ****. Cependant, il faut introduire à ce stade le problème de la hausse des taux d' intérêt ...

2.1 Italians' mortgages

Istat published a report on the housing market in Italy in ****.

In Italy, mortgages are broken down by region as follows:

Mortgages of Italians in ****:

Source: ****

It is the Center and the entire North that are driving the growth of this sector, especially for the year ****. Although, it should be noted, ...

2.2 The profile of mortgage applicants

At the end of the year ****, the mortgage brokerage company ** Max published a report with the most important data regarding the mortgage brokerage market. Among them, a profile of those who turn to mortgage brokerage to apply for a mortgage also emerges. The most important factors are summarized as follows:

Typologie ...

2.3 The profile of the mortgage broker

Mortgage brokers must take an aptitude test in order to be enrolled in the OAM List and then to practise. As a rule, mortgage brokers carry out their activities without being linked to any of the parties by relationships that could compromise their independence.

Geographical distribution of mortgage brokers:

Concentration des ...

3.1 Differences between classes and sizes of mortgage brokers

Size of mortgage brokerage firms:

The different sizes by which brokerage firms are categorized are as follows:

Micro: *-* employees Small: *-** employees Medium: **-** employees Large: **-*** employees Very large: over *** employees

Business sectors by size:

A **** report from the OAM brings out the main differences between business sectors and ...

3.2 Interest rates received by brokers

The rates received by mortgage brokers are highlighted each year by annual surveys conducted by the Bank of Italy. The rates are different depending on the nature of the other party, in other words whether they are individuals or companies.

For the year **** the figures are as follows:

These values are ...

3.3 Prospects for recovery

An OAM survey conducted in **** presents the outlook for the mortgage brokerage market from the firms' perspective. The results below highlight the products offered that mortgage brokerage firms believe will grow the most during these recovery years.

Important to keep in mind is the fact that under lockdown, it was private ...

3.4 Mortgage loans: real estate agencies and mortgage brokers

For individuals, as for businesses, it is essential to understand the interest rates at the time of a loan to find the best option. There are several rates to consider when applying.

The APR is the main tool for transparency in consumer mortgage contracts. It is an index harmonized at Community ...

4.1 Products offered by the mortgage brokerage market

An important characteristic of the mortgage broker is that he carries out his activities without linking himself to any of the parties involved. In this way broker independence is preserved. There can therefore be no collaboration, representation or dependence between the parties. Among the activities that a mortgage broker regularly does ...

4.2 Mortgage brokerage: products for businesses

Mortgage brokerage and all related activities (***) are not only available for individuals, but an important part is also reserved for companies. In fact, all mediation and especially consulting activities for companies are an important part of the market. This segment is commonly reffered to as corporate.

According to OAM's **** report, more ...

4.3 The price of real estate

There are two definitions to keep in mind:

New dwellings are newly constructed or existing dwellings renovated and sold by construction companies. Existing homes are existing homes sold by households or other institutional sectors.

Istat, in a report on housing prices published in ****, highlights the evolution of prices of new and ...

5.1 General Overview

Since the real estate crisis of ****, regulation has strongly influenced the mortgage broker profession. In fact, on the one hand the Basel III agreements published on ** December ****, imposed limits on risk-taking by banks, leading to the withdrawal of specialized banks from the brokerage segment.

On the other hand, national regulations follow ...

5.2 New 2022 regulation : the incompatibility between brokerage and financial services

On February *, ****, the rule that makes it impossible to practice real estate brokerage with financial services activities came into force. In other words, the profession of real estate agent is incompatible with that of mortgage broker.

This national rule comes from the European Law ****-**** (***), which therefore makes the practice of ...